Several individuals’ first banking experience was opening a Savings Account. It is a financial tool that helps you save money securely. Despite the deposits, your money remains easily accessible through various means. This allows you to take care of your financial needs and obligations systematically.

Moreover, a Savings Account extends an interest rate on your deposits. This Savings Account interest helps your money grow. The accumulative amount can help in achieving short-term goals and dealing with emergencies.

In this blog, we will look at some good-interest Savings Account:

  • Regular Savings Account

A Regular Savings Account is a basic type of bank account you can open for daily banking. You must maintain a minimum balance in the account. You should also be aware of the specific limits tied to the account.

At first, you may question whether a Regular Savings Account is good for earning interest. We think it is. This is because the Regular Savings Account is a standard banking product. Hence, all banks offer it. As a result, each bank offers a competitive interest rate. So, compare all bank offers and open an account with one offering the highest interest rate. This would help you earn good Savings Account interest.

  • High-interest Savings Account

A High-interest Savings Account extends a higher interest rate than a Regular Savings Account. Create a Savings Account online to maximize your interest earnings. Such an account may have a higher minimum balance requirement. It may also have different account limits. So, you must consider all factors, not just the interest rate, before opening an account.

Furthermore, banks follow a tiered interest rate system. The bank offers a fixed interest rate based on the account balance bracket. Ideally, a higher account balance fetches you a higher interest rate. Therefore, you should try to maintain a higher balance. It will not only help you save more but also earn higher interest.

  • Senior Citizen’s Savings Account

The Senior Citizen’s Savings Account is only for senior banking customers. It is very similar to a Regular Savings Account, but it has additional features and benefits that make it unique.

The Senior Citizens Savings Account offers a higher interest rate. The Indian government has mandated higher interest rates for senior citizens across banks. This mandate aims to ensure that senior citizens receive substantial interest income, which they can use to manage financial expenses.

  • Fixed Deposit Linked Savings Account 

The Fixed Deposit Linked Savings Account is another good-interest Savings Account option. Ideally, it is more of a facility than a specific account type. You could link the Regular Savings Account to a Fixed Deposit. When your Savings Account balance exceeds a threshold limit, the auto-sweep in the facility is activated.

The surplus funds from the account will be transferred to the FD Account. This means an FD interest rate will apply to the surplus amount. The FD interest rate is typically higher than the Savings Account interest rate. This helps maximise your interest earnings.

Although linked to an FD, it offers the same liquidity as other Savings Account options. This means you will benefit from both convenience and higher returns.

Things to Note About Savings Account:

Following are pointers to keep in mind about Savings Account interest rates:

  • Savings Account interest rates are subject to change.
  • Banks follow RBI’s directives and internal policies to change the interest rate.
  • Customers can check the latest Savings Account interest rate on the bank’s website/app.
  • The bank informs existing customers about interest rate changes via email.
  • Terms and conditions apply to the Savings Account interest rate. Make a note of it before you create a Savings Account online.
  • The bank considers your account’s daily average balance to calculate interest.
  • The bank credits the accumulated interest to your account quarterly.
  • The bank can modify the interest calculation policy at any time.
  • Savings Account interest earning is taxable. The interest is added to your taxable income and taxed at the applicable slab rate.
  • You need to declare the interest income under “income from other sources” when filing your tax return.

Summing It Up

A Savings Account is a default type of Bank Account many individuals open. It is basic yet crucial in today’s banking era. It allows you to save, earn interest, and bank. Consider opening a Savings Account at a bank offering the highest interest rate. It helps maximise interest earnings. Be aware of the terms and conditions for the Savings Account interest rate applicability and calculation.

 

 

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