Savings Accounts isa basic yet powerful tool. It is essentially a Deposit Account that enables you to save funds and earn interest on the sum at the same time. You can use this account as an emergency fund to cover unforeseen expenses. You can save your money every month to fulfil your goals. You can also use it to claim several discounts.
However, if you want to learn about other advantageous ways to use your Savings Accountand the funds, the following pointers might excite you:
Choose interest rates wisely
When you save money in a Bank Account, you earn interest on it at a rate determined by your bank. This, in turn, lets you take advantage of a passive income source. Hence, when opening an account, opt for one withthe highest interest rates on Savings Account. This lets you earn more on the same sum.
Information on the interest rates is readily available online on the bank’s website, and you can go through the details to ensure you earn decent interest on the funds deposited.
Use your Debit Card
When you open a Savings Account, you get a Debit Card. You can use this card to purchase anything and make payments online and offlineusing the funds in your account. However, choosing your account carefully allows you to enjoy various discounts on several brands. You can also earn various cashback points and rewards whenever you swipe your card.
These offers let you save a ton of moneybesides the interest on Savings Account. Hence, it adds something to your pool of funds each time.
Open a Fixed or Recurring Deposit
A Fixed Deposit is an investment instrument offered by banks. It allows you to transfer a lumpsum amount from your Savings Account and lock it away for a fixed period. This deposit then earns interest at a particular rate decided by your bank. At the end of the term, you receive your principal amount and the interest you make.
Alternatively, opening aRecurring Depositlets you invest a fixed sum at specific intervals for a particular term. Hence, it allows you to make deposits regularly and earn interest on such sums at a predetermined rate.These deposits are risk-free and let you earn more interest than your Savings Account.
Pay bills on time
With a Savings Account, you can register your billers and automate your bill payments. This, in turn, keeps you away from payingpenalties and fines.
Invest in Mutual Funds
Today, you can easily open Bank Account online through the Banking app. This account will let youseamlessly invest in Mutual Funds to grow your savings in the long run.