Savings accounts are ideal for individuals who wish to consistently grow their savings over time. But is simply signing up for a high-interest savings account the only step to making the most of your savings? The truth is, there’s much more you can do—such as opting for digital payments via UPI, budgeting regularly, and automating your savings. Read on to discover the key points to consider before choosing a savings account.
Tips to maximise your savings account benefits
Define a savings goal and budget regularly
Start by setting a monthly savings goal and, over time, an annual savings target. Determine these amounts by practising monthly budgeting. Using an online savings account and accessing it through a mobile banking app can simplify budgeting, allowing you to track all transactions conveniently. Regular budgeting helps you steadily progress towards your annual savings goal.
Automate your savings
IDFC FIRST Bank offers an auto-sweep savings account that automatically transfers your savings to a fixed deposit account. This account transfers your balance to a fixed deposit when the monthly balance (AMB) exceeds ₹50,000/-.
In this way, automating your savings ensures that you meet your savings goal without worrying about managing your funds daily.
Prefer online modes of transfer to save more money
Online fund transfer methods such as IMPS, NEFT, RTGS, and UPI transactions enable instant payments with zero transaction fees. This can help you avoid incurring any charges on banking services. With Zero fee banking from IDFC FIRST Bank, you can also enjoy free cash deposits at branches and free ATM withdrawals along with zero fees on all common banking services. The IDFC FIRST Bank mobile banking app also features the ‘One-Click Pay’ option, which allows you to transfer funds to a beneficiary with a single click. This digital convenience can help you save on transaction costs and enhance your savings.
Assess the fees charged by the savings account
Be aware of high fees associated with your savings account. If your bank charges excessive fees, consider switching accounts. IDFC FIRST Bank’s zero-fee banking feature waives off charges on all commonly used savings account services including IMPS, NEFT, and RTGS charges. This can help you save more by eliminating unnecessary fees.
Make the most of the benefits offered by your debit card
Plan your expenses to fully utilise your debit card’s benefits. For example, the VISA Platinum debit card provided with IDFC FIRST Bank’s ₹25,000 AMB savings account offers free and unlimited ATM transactions at any bank in India. It also includes complimentary domestic airport lounge access and free personal accident cover of ₹35 lakhs, including an air accident insurance cover of ₹1 crore.*Automate your monthly utility bill payments
The Autopay feature on the IDFC FIRST Bank mobile banking app allows you to automate regular monthly payments such as utility bills. This feature helps you avoid missing payment deadlines and incurring late fees, translating to higher savings over time.
Check if your bank offers monthly interest credits
In addition to checking if your bank offers a high savings account interest rate, verify whether it provides monthly interest credits. IDFC FIRST Bank savings accounts offer monthly interest credits, while the industry norm for interest credits is on a quarterly basis. Monthly credits enable faster compounding of your money, helping you grow your savings more quickly.
Conclusion
To optimise your savings using your online savings account, set clear savings goals and budget regularly. Automate your savings with features like IDFC FIRST Bank’s auto-sweep facility and prefer online fund transfer methods. Be sure to assess the fees charged by your bank, maximise the benefits of your debit card, automate your regular bill payments, and choose an account that offers monthly interest credits. Implementing these strategies will help you supercharge your savings and achieve your financial goals more efficiently.
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Disclaimer: This article is published in association with Teamology and not created by TNM Editorial.