Supercharge your savings: Get high interest rates on IDFC FIRST Bank Savings Account

The importance of the unassuming savings bank account often goes unnoticed. For most people, it is a platform to receive and spend money. However, it can be your stepping-stone to astute financial planning and investment.

With planning and understanding, you can get the most out of your savings bank account. To do so, you must understand its benefits and importance, the different types of savings bank accounts, and the things you should and shouldn’t do with the account.

Importance of a savings bank account

The many advantages of savings accounts make them important for smart money management.

• Safety and security

A ​​​​savings bank account is one of the safest places to park your money. Unlike other investments, there is almost no risk involved when you deposit here, and your money can also be withdrawn at any time.  

• Convenience

You can maintain a savings bank account with minimal effort. Internet and mobile banking have made operating even more convenient. Deposits and withdrawals, too, are automated with cash deposit machines and ATMs. 

• Saving and investment opportunities

​A savings bank account is the first step towards adopting good saving and investment habits. You can save money here to earn savings account interest. You can also link it to other investment and insurance products the bank offers.

• Loan facility

Savings bank account holders have easy access to the bank’s loan products. Besides, many account holders become eligible for pre-approved loans from their banks.

• Earning with liquidity

Savings bank accounts offer interest income without a lock-in period. Albeit at a low rate, interest income accrues on your account balance while allowing regular deposits and withdrawals.

With IDFC FIRST Bank Savings Account, you can earn up to 7% interest rate p.a. and monthly interest credits, thus multiplying your money with each passing month.

Also read - How to earn high interest on your savings account?

Features of a savings account

Some of the features typically found in savings bank accounts include -

• Interest income

Savings accounts offer interest income on the balance maintained. With IDFC FIRST Bank, you can benefit from the power of compounding against your savings bank account balance.

• Digital banking

Savings bank accounts can be managed through an internet banking profile and mobile banking application. Through the IDFC FIRST Bank mobile banking app, you can track your spending and get a cash flow analysis of your account. 

• ATM facility

Banks offer an ATM facility to withdraw funds from a savings bank account. IDFC FIRST Bank allows free and unlimited ATM withdrawals to its savings account holders.

• Debit card

Apart from ATM withdrawals, the debit card also offers various value-added services. Enjoy one complimentary domestic airport lounge access every quarter, accident insurance cover, and a daily purchase limit of up to Rs 6 lakh on your Visa Platinum Debit Card.

• Access to other products

You can access various investment and insurance products through your savings bank account. Through your IDFC FIRST Bank Savings Account, you can also make other investments - fixed deposit accounts, insurance, mutual fund investments, etc.

Also read – Zero-fee banking: The next big thing in savings accounts

Types of savings bank accounts

There are different types of savings bank accounts, which may vary from bank to bank. IDFC FIRST Bank offers the following types of savings accounts, apart from the regulars -

• Minor’s saving account

IDFC FIRST Bank Minor Savings Account comes with two options - self-operated by minors above ten years and guardian-operated for minors of all ages.

• Women’s savings account

FIRST Power Account is designed for women, with specially curated benefits and offers on lifestyle and fashion. 

• NRI savings account

IDFC FIRST Bank offers a bouquet of products under NRI banking, with NRE savings, NRO savings, and seafarer’s savings accounts.

Best practices for using a savings bank account

Some of the best things you can do with your saving bank account include -

• Saving money

The balance on your savings bank account is a regular reminder of the money you save. Building your account balance can be a motivation to develop healthy saving habits.

• Budgeting

By monitoring your savings bank account inflows and outflows, you can handle your monthly budget efficiently.

• Emergency fund

If you manage to maintain a decent balance in your savings bank account, it can be handy for times of urgent financial need. After all, your savings account balance is liquid and can easily be withdrawn.

• Maximising interest rate benefits

IDFC FIRST Bank offers attractive interest rates with a monthly credit feature that leads to faster compounding of your interest income. Let’s assume that you maintained Rs 10 lakh in your bank that offers 4% interest on your savings account. In one year, you will earn an interest income of,

- Rs 40,000, if interest is credited annually,

- Rs 40,605, if interest is credited quarterly and,

- Rs 40,742, if interest is credited monthly.

Thus, monthly credits lead to faster compounding of interest. 

Common mistakes to avoid when using a savings bank account

Here are a few things you should never do with your savings bank account –

• Using it ONLY as a transaction account

A savings bank account can be used for a variety of purposes. Apart from regular payments and deposits, you can streamline your bill payments, EMIs, insurance premiums, etc. You can use it as the focal point for your mutual fund, as well as insurance purchases.

• Not maintaining minimum balance

Unless you have a zero-balance account, always maintain the required minimum balance. Not doing so attracts non-maintenance charges, which can be avoided by monitoring your balance regularly.

• Not taking advantage of interest rates

Interest rates vary from bank to bank. Choose a bank that offers an attractive interest rate, so you get the most out of your account balance.

• Neglecting account statements

Regular scrutiny of account statements helps you identify overspending patterns. You can also identify fraudulent transactions and bring them to the bank's notice. However, most leading banks have stringent security measures in place to avoid security and privacy compromise of your account.

Also read - Savings account charges you didn’t know

Conclusion

Smart use of your savings bank account can yield a variety of benefits for your everyday finance. From higher interest income to value-added services and insurance coverage to well-planned investments - a host of utilities are ready to be unboxed in savings bank accounts. Open Bank Account Online today to earn up to 7% interest rate p.a. and get the most out of personal banking.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.