If you want to earn high interest from any savings account, read the full article – If You Want to Earn High Interest on Your Savings Bank Account ? Read this:
It is said that ” money pulls money”! This is only true when you investment it in right place. Inflation rate in our country is 6-8% average. If you want that your earned money, help you to become rich in future, than it becomes important that your interest is more than the rate of Inflation Rate. so Earn High Interest is good idea.
While many people invest money in different ways like Share Market , Mutual Funds , Gold, Fixed Deposit etc. but usually most of people keep it remain or put it in Savings in the Bank Account for security. But is that correct? …
You can not become rich until you put your money on work for yourself, not you should work for for money.
Why should you have money in Savings Account – Benefits of Saving Account
- Saving Account is a way to secure money.
- The biggest reason for keeping money in it is that it remains in the “liquidity of money”. so, you can deposit or Withdraw your money whenever you want.
- Some banks offer a higher interest rate in Savings Account, which is why people are attracted to them.
- Also, when a portion of your money is not being used, then savings account is a measure to keep it the most simple and safely.
In the Savings Account of any General Bank, the annual interest rate lasts around 4% which is not enough. Because more than that, the country’s inflation rate remains (7% – 8%). If you want to earn 9% interest without taking more risk, then read some of the following measures, which will help you to get the maximum benefit of the Savings Account –
How to Earn High Interest on Saving Bank Account
Option 1: Invest in money in high-paying banks at Savings Account –
Some private banks in India give more interest than other banks in their Savings Account, some of them are given below:
List of Best Saving Accounts in India
Kotak Mahindra Bank (Kotak Mahindra Bank)
- 6% Interest : On investing more than 1 lakh
- 5% Interest : Less than 1 Lacs on Investment.
Yes Bank (Yes Bank)
Interest up to 6%: for less than 1 million
IndusInd Bank ( IndusInd Bank )
- 4% Interest: Daily Balance up to 1 Lakh
- 5% Interest: Daily Balance from 1 lakh to 10 lakh
- 6% Interest: Daily Balance More than 10 Lacs
You can see that even you can not get more than 6% interest by investing in this bank’s savings account, if you are not satisfied with it then you can try another one
Also Read: – Rakesh Jhunjhunwala Success Story
Option 2: Use the Sweep In / Sweep Facility feature
This is a feature that lets you take advantage of both the Fixed Deposit and Savings Account. Which means –
- You can earn High Interest equal to Fixed Deposit and
- Together you can also take advantage of the liquidity of Savings account.
Generally we can withdraw money immediately in Emergency so that we keep the Savings Account. But this can not make us much interest, but Sweep In / Sweep Out or Auto-sweep at this time is very useful.
In this, if the money kept in your Saving Account and it becomes more than the pre-limits at one time, then it will automatically transferred to your Fixed Deposit Account. so you will Earn interest in Fd
But this is different from any normal FD in such a way that you can withdraw money in it anytime. First of all, you can use the deposit amount in the savings account and if you still need money, then the money will be automatically transferred to your SA from FD Account. With this, you will get interest on deposits up to that date and no penalty will be taken. The remaining amount, which is deposited in FD so far, will be available at higher rates.
Here you can see that only 4% interest is available on the full amount.
Here you can see that the auto-Sweep facility is getting 25% in the savings account which is 4% and 75% of the amount that has been converted into FD is getting 8-9% interest.
Which banks offer Sweep In / Sweep Out or Auto sweep?
Here the names of those banks are provided by different names –
- SBI Savings Plus Account
- ICICI Bank Money Multiplier
- HDFC Savings Max Account
- Union Bank – Union Flexi Deposit
- PNB Prudent Facility
- Axis Bank Encash 24 Flexi Deposit
- Oriental Bank of Commerce – Flexi Fixed Deposit
- Allahabad Bank Flexi-fix Deposit
You can also set yourself the threshold limit in the auto-sweep account. (the limit by which more amounts will be converted into FD automatically). Under ideal circumstances this amount should be as much as your 2 months spent.
Opening this type of account is not a difficult task. In order to convert your Savings Account to Autosweep Account. you will have to fill up an application form to the bank. whose information will be found on your bank or bank’s website. With this easy solution, the interest on your money can be doubled. so today you can open an Autosweep account in the bank given above.