6 Best Ways To Earn Returns Through Your Savings Account

The very first bank account opened by most people is a Savings Account. Now, do you know that your savings account can help you earn interest on the money that you deposit in it? The rate of interest that you earn on your savings differs from one bank to the other. There are also several other ways to earn savings account returns. However, not many people are able to utilize the maximum potential of a savings account as they do not possess the right information. To help you make the most out of your savings account, here are 6 Savings Account tips:

1. Choose an account with high interest rate

The best way to maximise the returns from your savings account is to open a savings account with a bank that offers more attractive interest rates. After all, a higher rate of interest automatically gets you more returns. Compare savings rates online before choosing the right bank to go with. Even a slight increase in the savings account interest rate can see you earn more interest on the money you have saved up over a period of time.

2. Budget your monthly expenses and make use of the auto-sweep facility

You may wonder how budgeting is related to earning returns. The answer is quite simple - every rupee saved is a rupee earned. This is one of the oldest yet effective money management techniques for earning best return on savings account. Creating a budget will not only help you understand your monthly expenses, but it will also help you in finding different avenues to save money. Once you know your monthly expenditure you can use the auto-sweep facility to its maximum. The auto-sweep facility allows you to automatically transfer excess money in your savings account to a fixed deposit (FD). This can help you earn a higher rate of return as the average bank return rate on funds stored in a standard savings account is anywhere between 2.75 % to 3.30 %; while the interest rate offered on FDs is usually anywhere between 2.80% to 5.25%. Plus, when your money is secured in an FD, you are less likely to withdraw and spend it.

3. Open a recurring deposit

FDs are usually used to earn interest on a lumpsum amount of money. However, not all of us have large amounts of excess funds available for locking into FDs. In this case, you can open a recurring deposit (RD) with your lender. An RD is one of the best saving tools you will come across. Through an RD, you will be able to invest a fixed sum of money every month in a scheme that earns you interest on your savings. Bank RDs generally offer a rate of return that is anywhere between 3.7 % to 5.25 %. The returns earned depends largely on the tenure of the RD. For example, an RD that has a tenure of 1 year can possibly offer a return percentage of 5 %, while an RD with a tenure of more than 5 years may offer a return percentage of 5.25%. The advantage that RDs have is that the minimum amount you need to put aside is smaller and quite manageable. For instance, you can start an RD with an amount of just Rs 1000 per month.

4. Take advantage of the rewards offered on debit cards

If you have a savings account, it is quite likely that you have a debit card linked to it as well. Prominent banks offer a plethora of discounts, benefits, and other rewards to debit cardholders. For example, you may get to avail of discounts when you shop online or buy products from co-brands. Some debit cards even give you free insurance coverage. All of these rewards and benefits can help you save a significant amount of money in the long run. Thus, one of the best ways to utilise your savings account to the maximum is to avail of such debit card offers when making your daily purchases.

5. Set saving goals

Lack of discipline is one of the major reasons why most people struggle to achieve their financial goals of saving money. Now, how does one build the discipline to save money? It’s simple! Set a goal to save a certain amount of money within a certain period of time. Do remember to set realistic short-term saving goals and ensure that these are neither too easy nor too hard to achieve. The same logic applies to long-term saving goals. This is because an easy goal can compel you to slack off, while a highly difficult goal might discourage you from carrying on. Hence, by setting an achievable goal, you will build the habit of saving money consistently.

6. Try and open two or more savings accounts

Opening two or more savings accounts will help you reap extra benefits and allow you to manage your funds quite easily. This is because having just one savings account might make it hard for you to keep funds from getting spent. Most of us have our primary savings account linked to online wallets and AutoPay / BillPay for various bills. Therefore, it helps to keep a second savings account into which you deposit funds each month that do not get spent. To make your savings even more achievable, avoid linking this second account to any payment system like UPI and preferably don’t take a debit card on it as well. This is one of the most workable savings account tips and a great way to truly put aside funds for a rainy day.

A savings account is one of the safest ways to earn interest on idle money. Bank of Baroda offers you a range of savings account types to choose from. Each of these accounts has its own set of benefits and features that suit a particular demographic. After all, we understand that our customers have unique needs for their finances.

Some of our savings accounts include the Baroda Salary Classic, Baroda Champ Account, and Baroda Senior Citizen Privilege Scheme. Each of these accounts caters unique benefits for our customers. The Baroda Salary Classic is suitable for salaried employees with a monthly income below Rs 50,000. This account has many benefits such as waiver of retail loan processing charges, discounts on safe deposit locker rentals, and free credit card, among others. The Baroda Champ Account is a savings account for minors and offers benefits such as free DD for fees payment and has no requirement for a minimum account balance. The Baroda Senior Citizen Privilege Scheme is a high interest savings account and also offers flexible fixed deposits. This account can also be used as a pension account and comes with a discount on locker rental charges. The Baroda Super savings account is in the nature of a superior Savings Bank Account with added value propositions to high value residential customers. The product is available at Metro and Urban centres. B3 digital account is a new to Bank customers can open 63 (bob World benefits bonanza) digital savings account instantly using remote Video KYC. The account opening process is completely digital with zero physical touch points and is packed with exclusive benefits like OTT subscription, Benefits on charges, reward points and many more.

To know more about which type of Bank of Baroda savings account suits our needs, get in touch with us today. You can visit the nearest Bank of Baroda branch or call us up on 1800 5700.