Exploring the best ways to earn money with a savings account

The Indian economy has been cash-heavy for decades. But not anymore. With a QR code hung even on street vendor carts, online transactions are here to stay. Consequently, savings accounts have become the best way to spend money in India. And if you choose the right savings account, it could also become the best way to earn money.

Other investments indeed offer better returns. However, none can match the liquidity and flexibility that savings accounts offer. Besides, the funds are immune to market volatility as well.

In fact, there are numerous other benefits of having a savings account, such as competitive interest rates, zero charges on banking services, and easy access to investment instruments. All these make savings accounts one of the best ways to earn money.

Benefits of having a savings account
 

There is a difference between having a savings account and using it actively. You may use a savings account to receive, spend and invest money. However, if you look beyond this basic utility, a savings account can also be your best way to earn money safely. Let us find out how –

• Safety and security of funds-

Maintaining funds in your savings account is always safer than carrying cash. The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance coverage on deposits of up to ₹5 lakhs.


• Liquid funds-

Your savings account balance is always accessible to you. You can withdraw funds at a bank branch or an ATM or even transfer money online to a different account. This makes it as liquid as cash.


• The financial planning fountainhead-

Your savings account gives you access to different investment options. If you have an IDFC FIRST Bank Savings Account, you also get a cash flow analysis. Thus, your savings account can be the starting point for your financial planning, spending, investing, and budget management.


• Easy way to earn interest-

Despite being a liquid fund, you can continue to earn interest on the monthly average balance maintained in your account. If you choose the right bank, your savings account can be the easiest way to earn money.


• Regular cash flow-

If your savings account has monthly interest credits, it also becomes your source for regular cash flow. You can use the interest credited every month as a regular payout.

It’s true that investment options, such as equity or debt, provide a higher rate of return. However, the liquidity and safety of a savings account is unmatched. While you cannot withdraw every last rupee you invest in the stock market, funds in a savings account are always available.

Savings account vs other investments
 

Investment is a healthy practice, but maintaining a savings account balance is the best way to earn money through interest conveniently. Here’s how –

• Immediate fund availability -

Debt investments have fixed long-term tenures. Even equity investments have a few days of settlement time. But you can use your savings account balance in real-time.


• Low risk -

Equity investments offer higher returns but come with price volatility. A savings account in a reputed bank is a safe way of parking your funds.


• Emergency fund-

Every family must have an emergency fund that can be used in times of need. A savings account can be used to maintain this emergency fund. If your funds are tied up in an investment, you may be forced to withdraw it prematurely or apply for a secured loan against it.

The right savings account will grow your money no matter the market conditions while giving you full flexibility to withdraw funds whenever you want. This is why making smart choices, such as the IDFC FIRST Bank Savings Account, is so important.

Features of IDFC FIRST Bank Savings Accounts
 

Now that you are convinced about the importance of a savings account balance, it’s important to pick the right one. Here’s why an IDFC FIRST Bank Savings Account can be your best way to earn money while saving money –

• Competitive interest rates-

The interest rate on IDFC FIRST Bank Savings Account is not just better than other savings accounts, but it competes with the fixed deposit rates of leading banks. This makes it the best way for earning money without making an effort.


• Zero-fee banking-

An IDFC FIRST Bank Savings Account offers zero-fee banking. This means you get all the commonly used savings account services free of cost - including zero debit card issuance charges, zero ATM transaction charges at IDFC FIRST Bank and other banks’ ATMs, zero DD issuance charges, and more.


• Monthly interest credits-

Unlike most other banks, the IDFC FIRST Bank Savings Account credits your interest income every month and not every quarter. This leads to faster compounding and higher income in the long run.

In conclusion
 

A savings account is the safest way to earn interest while maintaining liquidity. With unbeatable safety and flexibility, your funds are always available when kept in a savings account.

Open your IDFC FIRST Bank Savings Account today to discover one of the best ways to earn money!