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How to Avoid Keeping Your Money Idle in a Savings Account


The traditional default mind-set about money is to play it safe. Putting most of it in a savings account and investing a small portion in time-tested solutions is usually what most individuals resort to. While savings accounts with high interest rates do help your money grow, you can still earn more. A certain portion of your funds can be invested into other avenues that offer good returns.

How much money should your savings account hold?

Savings accounts are accessible. Depending on your spending habits and requirements, your account should hold an amount that should suffice for your basic needs over a period of 3 to 6 months. It is advisable to maintain this amount to have easily accessible funds in case the need arises.

Once your savings account has the minimum funds in place, you should make the best of the balance amount by making the right investments.

Where should you invest the idle money in your savings account?

There are multiple investment options which can:

  • Offer you better interest rates
  • Help you in tax saving
  • Help you build wealth

Where, when, and how much you invest depends on your earnings and spending. Here are some of the ways you can put a good portion of the money in your savings bank account to good use:

Certificate of Deposit

When you purchase a Certificate of Deposit, you are securing a pre-determined amount of money for a set period. This instrument is available for a term as small as 7 days to a year. The minimum amount to be invested is Rs. 1 lakh. This is regulated by the RBI.


Gold is a traditionally familiar and lucrative investment. You can plan to invest in it for the long-term or short-term, depending on your goals. Given the nature of this investment, consider investing about 5% to 10% of your funds.


Bonds are usually the option to choose when the goal is to avoid risks. On maturity, you receive your principal amount along with the returns earned in this duration. Bonds also tend to offer better returns on short-term and medium-term investments.

Short-term Funds

With a maturity duration of less than a year, short-term funds offer higher interest rates than a savings account. They also generally come with low risk.

The investment options suggested above are short-term and serve as suitable avenues to the funds in your savings accounts. If you don’t hold savings accounts with banks offering high interest rates, you can also explore more options for better returns.

The right avenues will help your money grow and give you good returns. Without investing in these avenues, much of your money would be lying idle in your savings bank account. Here are some reasons why you shouldn’t let that happen:

Fixed balance

When you see your savings account balance, it reflects a certain amount that is fixed unless a new credit is made. If you do not already hold significant investments in other avenues, the savings account balance would be all that you have.

Easy access to money

Savings accounts offer easy access to the entire balance amount. While this may offer you some comfort, know that you are also allowing the development of unhealthy spending patterns. This can affect your future security. While you would need some amount of funds in times of need, the remaining balance shouldn’t be spent carelessly. It can instead be invested in other avenues.

Lack of growth

When a huge portion of your earnings sits idle, it may not grow and cease to be an asset for your future. Courtesy of inflation, the value of your money may go on decreasing. Transferring at least some amount of money into different options can help build your wealth.

Ensure that you make the best of the money in your savings account. Keep investing money into the right avenues while your savings account holds funds meant for emergencies.



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.