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Business News/ Money / Personal Finance/  Planning to open a savings account? Here are 4 ways to make the most of it

Planning to open a savings account? Here are 4 ways to make the most of it

You may safely save your spare cash in a savings account, making it both flexible and secure. Here are a few essential tips to make the most of your savings account.

Few key strategies to make the most of your savings account.Premium
Few key strategies to make the most of your savings account.

Savings play a significant role in everyone's life. You must make saving a part of your everyday routine whether you are employed, a student, a stay-at-home parent, or retired. You will notice that your own funds are better organised once you have ingrained this practice. Opening a savings account is one of the best and simplest methods to include the habit of saving in your daily routine.

A savings bank account gives you a secure place to save your extra money. Money may be quickly withdrawn from or deposited into your savings account. This eliminates the requirement for you to carry cash with you at all times and allays your concerns about potential cash theft. With a savings bank account, your money is quite flexible and secure. Here are a few key strategies to make the most of your savings account.

Choose a high- yield savings account

It's appropriate to open a savings account with the same bank where you conduct your daily banking, however your typical bank savings account might not provide you with high returns. Because of this, it's crucial to conduct thorough research before selecting your savings account. Consider choosing an account that comes with a high interest rate and other perks.

READ MORE: 9 public sector banks offer the highest interest rates on savings accounts

Automate your savings

Establish a monthly contribution into a savings account to ensure ongoing saving. Additionally, boost your savings anytime your wage or pension is increased; this makes saving practically effortless. You must keep a track of every rupee you spend for a month to determine how much you can save. Then, create a budget that includes only the necessities, and see how much money is left over.

Use the sweep-in facility

This automated tool converts any amount in your savings account that exceeds a certain threshold into a fixed deposit. However, the bank also has the option wherein it automatically liquidates the FD to make up the gap if there is a cash shortage. To earn income at those rates, putting your money in FD is a better alternative.

READ MORE: 5 risks of investing in bank fixed deposits

Grab the offers and discounts

People who want to get the most out of their savings accounts might select an account that regularly offers discounts and other perks. For instance, a number of banks provide their clients with a wide range of advantages. From discounts on food delivery apps to shopping/EMI incentives on e-commerce sites and special deals during festivals.

For you to save your emergency cash, a savings account is the best option. It fosters the practise of saving. These accounts act as a safety net in case you need money for unplanned circumstances like medical bills. Having a savings account is thus always a wise decision.

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Published: 26 Jul 2022, 05:00 PM IST
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