High Interest Return Saving Account, best saving account, Best Autosweep, high interest return accounts, banks with high interest return
Inflation rate in our country remains on average 6-8%. If you want your money earned, go ahead and help you become rich, then it is important that your ROI (Return on Investment) should be higher than the Inflation Rate.
Although many people invest their money in various ways like Share Market, Mutual Funds, Gold, Fixed Deposit etc. but usually a large part of everyday needs of some people and some Savings are either like that. They are lying or they are kept in Savings Account for security.
What is a Savings Account?
A savings account is an interest-bearing deposit account that is kept in a bank or other financial institution. Although these accounts usually pay a nominal interest rate, their security and reliability make them a great alternative to the parking cash you have available for your short-term needs.
Savings accounts have some limitations on how often you can withdraw funds, but typically offer exceptional flexibility that is ideal for building an emergency fund, saving for a short-term goal such as buying a car or vacation. Going on, or simply sweeping surplus cash you don’t need in your checking account so that it can earn more interest elsewhere.
Types of savings accounts
There are three types of Savings Accounts 1. Deposit Savings Account 2. Money Market Accounts 3. Certificate of Deposit (CD)
Deposit savings account
Deposit savings accounts, also known as transactional savings accounts, are the simplest way to store your money in a bank or credit union and receive interest for doing so. These types of savings accounts can usually be opened with a small minimum deposit amount, and you can avoid paying the minimum deposit fee as long as you maintain it.
Money market accounts
Money market accounts are like deposit accounts, in which you deposit money in them and the money gets in interest. However, they may require a much higher initial deposit, and if the balance falls below the minimum amount, you may be charged. The opposite is that the best money market account interest rates may be slightly higher than other types of savings accounts.
Money market accounts have an important advantage over transaction savings accounts: they allow you to write checks against the balance. The six-transaction limit also applies to money market accounts, including check writing.
Certificate of deposit
The Certificate of Deposit (CD) has the lowest liquidity but the highest interest rate. To save money on CDs, you make a purchase for a maturity period, sometimes called a “period” or a “period”. The maturity period can range from a few months to 10 years, with higher interest rates. The best CDs have interest rates between 1% and 1.35%.
You can withdraw from the CD before it matures, but you can charge a hefty fee. If using a CD as an emergency or raincoat fund, choose a shorter duration.
How to earn more interest on Saving Account
Before this, we have to know why we keep money in a savings account and what we get from it –
Why should you keep money in a savings account?
- Saving Account is one way to secure money.
- Its biggest advantage is “Money liquidity, that is, you can deposit or Withdraw money whenever you want.
- Some banks offer higher interest rates in Savings Account, due to which people are attracted to them.
- Also, when some part of your money is not being used, then saving account is one of the easiest and most secure way to keep it.
The annual interest rate in Savings Account of any normal bank is around 4%, which is not enough.
Because more than that the inflation rate of the country remains (5% – 7%).
If you want to earn up to 9% interest from a safe option like Best Saving Account without taking much risk, then follow some of the methods given below and earn the highest interest on your savings account –
What are the banks that give high interest?
Some private banks in India pay more interest in their Savings Account than other banks, the information of some of those banks is given below –
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 lakhs
Kotak Mahindra Bank
- 6% Interest: On investing more than 1 lakh.
- 5% Interest: On investing less than 1 lakh.
Yes Bank
- Interest up to 6%: for amount less than 1 crore.
You can see that even after investing an amount in Savings Account of these bank you cannot earn more than 6% interest, if you are not satisfied with this, then you can try another solution.
How to use Auto-Sweep Bank Facility?
This is a facility from which you can take advantage of both Fixed Deposit and Savings Account. Which means –
- You can earn High Interest equal to Fixed Deposit and
- You can also take advantage of the liquidity of Savings account.
Generally, we could withdraw money immediately in the emergency, that’s why we keep it in Savings Account. But we cannot earn much interest from this, but in such times, the facility of Sweep In / Sweep Out or Auto-sweep proves very useful.
In this, if the money kept in your Saving Account exceeds the prescribed limit, then they will be automatically transferred to your FD ie Fixed Deposit Account.
This means that some part of the money kept in your savings account becomes FD and you get up to 9% interest on it separately.
And if you need more money, you can also transfer money from FD account to savings account. With this, you will also get interest on the deposit till that date and there will not be any penalty. The remaining amount, which is still deposited in FD, will continue to get interest at a higher rate.
Which banks offer Sweep In / Sweep Out?
Here are the names of the bank accounts which provide this facility –
- SBI Saving 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 the threshold limit in auto-sweep account (the limit by which more money will be automatically converted into FD if you deposit more). Under ideal circumstances, this amount should be as much as your 2 months of expenses.
How to open Sweep In / Sweep Out Account?
Opening this type of account is not a difficult task.
- To convert your Savings Account into an Autosweep Account, you have to fill an application form with the bank, whose information will be found on your bank or on the bank’s website.
- With this simple solution, the interest on your money can be doubled, so go to the bank today and open an Autosweep Account.