This Bank Offers Interest Rates Up To 7% On Its Savings Accounts

Investing your money is as crucial as earning it. Suitable investment avenues help you grow your money and build a corpus for the future. But the availability of uncountable investment options in India can make your task tough. You need to be aware of your investment horizon, liquidity requirements, and risk appetite.

Parking your idle funds in a savings bank account can also help grow your money in the long term. All you have to do is make sure you are getting the highest interest rate on your savings account. Continue reading to take a deep dive into the details.

How to grow money through a savings account?

Here's how a savings account can help grow your money and achieve your long-term financial goals -

Get FD-like interest on your funds

Believe it or not, you can earn higher interest on your savings account that can be compared with even Fixed Deposits (FDs).

• Banks like IDFC FIRST Bank provide up to 7% interest p.a. on the money kept in savings accounts, along with monthly interest credits
• When you keep your funds in such an account for a prolonged period, you can steadily grow your money
• Savings account interest rates vary from bank to bank. Hence, make sure to compare and choose to open your savings account with the bank that is offering the best savings account interest rate.

Earn more with the power of compounding

Compounding has a multiplier impact on your savings by providing interest on the interest that you have already earned.

Let's understand the power of compounding with the help of an example -

• Suppose you have parked Rs 10 lakhs in a savings account offering 6% per annum interest compounded annually. After 10 years, your wealth would become approximately Rs 18 lakh
• Had this amount been invested in an instrument offering the same interest rate and for the same period, without compounding, you would have earned only Rs 16 lakhs

• The frequency of compounding determines how soon you can grow your money. While most banks in India provide interest with quarterly compounding, IDFC FIRST Bank ensures monthly interest credits

• When your interest gets credited monthly, you start earning more through the impact of compounding. In the long run, this can significantly boost your wealth creation

• You won't have to wait till the end of the quarter to receive your interest. It will be available for use at the end of every month, boosting your financial strength

Maximize your savings with debit card rewards

• When you open a savings account with a bank, you are given a debit card to make online or offline transactions from your savings account and withdraw cash from Automatic Teller Machines (ATMs) anytime and from anywhere

• You can also earn reward points on your debit card and use them to increase your savings

• Furthermore, debit cards offer attractive discounts or cashback while shopping at select stores

• The more savings you make through such debit cards, the more you will be able to invest and grow your money

Stay protected against the emergencies

• Some banks provide complimentary insurance protection to their premium savings account customers

• For example, IDFC FIRST Bank offers personal accident cover of up to Rs 35 lakhs and air accident insurance of up to Rs 1 crore with a savings account with an average monthly balance of Rs 25,000

• These services can be handy during emergencies and allow you to save money

Why wait? Open a savings account now!

A savings account can unlock an array of benefits, given that you choose the right bank/lender. With all its features and flexibility, IDFC FIRST Bank offers one of the best savings accounts in India. To know more about its eligibility criteria and open back account online, click here.