Hack wealth creation: 5 Simple savings account moves that pay off

What do you open a savings account for? Ask this question, and the most common responses would be:

1. To create an organised space to park liquid funds
2. For easier banking transactions
3. To facilitate account-to-account fund transfers
4. For online banking
5. To manage money easily

The list goes on. But have you ever considered your savings account for wealth creation?

Surprising?

Not really. If used smartly, your humble savings account can help in building wealth over time. If you are wondering how, read on to find five simple moves that can make a big difference in your wealth creation journey.

5 Effective savings account hacks for wealth creation
 

When it comes to unlocking the full potential of your savings account for wealth creation, you don’t have to undertake major changes. Just some simple financial habits can do the trick.

1. Choosing the right savings account

The first, and perhaps the most important hack, is choosing the right savings account. If you are wondering what to look out for, there are two primary things:

a. High interest yield
b. Low charges

Choose a high-interest savings account that offers the maximum return on your balance and has low charges so that you can save without the added expense.

For instance, IDFC FIRST Bank Savings Accounts offer up to 7.00% per annum interest with zero-fee banking on over 30 common services, making it a suitable choice.

Pro tip: Check the compounding frequency of interest calculation, too. Savings accounts with higher compounding frequencies can deliver higher returns. For instance, a balance of ₹10,000 will fetch the following returns at different compounding frequencies.

2. Different accounts for different needs
 

Many individuals make the mistake of having a single savings account for all their financial goals. This can prove counterproductive, as your savings account becomes a common pot for all your financial needs.

Instead, choose different accounts to save for different goals and earmark them. For instance, you can open different savings accounts for:

a. Emergency funding

b. Buying a home or a car

c. Taking a trip

d. Saving for your child’s higher education, etc.

This helps you identify and prioritise your goals and save for them independently. You can track how much you have saved for each goal and how much more is required. This gives you a clear picture of your financial planning, and you can also avoid dipping into your emergency fund for unnecessary expenses.

Pro tip: You can use IDFC FIRST Bank’s account aggregator feature to link all your savings accounts and get a consolidated view of your finances. This simplifies account management and eases savings.

3. Auto sweep-in facility
 

The auto sweep-in facility is a silent yet effective mode of wealth creation. Under this facility, you link your savings account to a fixed deposit (FD) scheme and set a trigger limit. Typically, the FD created through this facility has a default tenure of 1 year and 1 day.

Whenever your savings account balance exceeds the trigger limit, the excess is transferred to the FD for higher interest earnings. This transfer from a savings account to an FD is called a sweep-in.

On the contrary, if your savings account balance falls short, funds from your FD are transferred to the savings account to maintain the balance. This is called sweep-out.

The sweep-in, sweep-out facilities direct the idle balance in your savings account to high-interest FDs for higher returns. Over time, your FD grows, and you can create a good corpus for your financial goals.

Pro tip: When setting the trigger limit, choose a realistic figure which gives you access to optimal liquid funds in emergencies. Also, ensure that the limit is greater than the minimum balance required, so you don't incur unnecessary charges for non-maintenance. 

4. Automating investments
 

Investing helps you grow your savings and create funds for your financial goals. However, when it comes to investments, discipline is the key. Random and haphazard investments might not create the desired corpus. Instead, if you save regularly, small savings can accumulate into a large corpus over time.

To achieve this, you can automate your investments from your savings account. Simply place a Standing Instruction or auto-debit mandate on the account. This will direct a specific amount, regularly, to your chosen investment avenue and automate savings.

For instance, consider starting a Systematic Investment Plan (SIP) or a recurring deposit (RD) scheme and linking it to your savings account. Thereafter, your account will invest in the SIP or RD automatically every month, allowing you to build a substantial corpus over time.

Pro tip: Keep the auto-debit date after your income is credited to the savings account. This will ensure that your account has sufficient balance for investments. Moreover, you will be able to save first spend later, which is an effective financial habit for wealth creation.

5. Cashing in on debit card rewards
 

Most savings accounts offer debit cards for easy cashless transactions. Most of these cards offer attractive rewards on transactions in the form of cashbacks, discounts, freebies, etc. If your savings account gives you a choice of debit cards, choose one with maximum benefits.

Use the card for your transactions to earn cashbacks and discounts, which add to your savings. After all, every saved penny is a penny earned!

Pro tip: Check the fees and charges associated with the debit card, especially the joining and annual fees. Choose a card with low charges to save more. Also, check the other benefits of the card, such as complimentary insurance coverage, higher transaction limits, etc.

Why come to IDFC FIRST Bank for this specific problem

You don’t need to stress over the prospect of building wealth. Wealth creation starts with some simple and smart moves, and your savings account can be its launchpad. With the right savings account in your kitty, like the IDFC FIRST Bank Savings Account, you can start your wealth creation journey.

IDFC FIRST Bank offers a high-interest savings account that yields attractive returns on your surplus funds. Plus, with the IDFC FIRST Bank mobile app, you can manage your savings account effectively. Set up a mandate for automating investments or tracking your expenses, the app helps you do everything.

Open an IDFC FIRST Bank Savings Account and make your money work hard for you with some effective tweaks. No major lifestyle changes, no complicated tips, just some simple habits, and you can be on your way to wealth creation.

What makes IDFC FIRST Bank’s Savings Account stand out?
 

1. Zero fee banking on all Savings Account services including IMPS, NEFT, RTGS, ATM transactions, Debit Card, SMS alerts, and 30+ other services 
2. Earn attractive interest rates of up to 7.00% p.a. with monthly interest credits and the benefit of monthly compounding 
3. Higher ATM withdrawal and purchase limits for added convenience on your Savings Account 
4. Exclusive rewards and cashback offers on your Savings Account Debit Card, plus a rewarding loyalty program through FIRST Rewards 
5. Manage your money anytime, anywhere with the IDFC FIRST Bank mobile app and internet banking platform 
6. Enjoy cash flow analysis, investment options, and rewards tracking, all within your digital banking experience 
7. Recognised among the World’s Best Banks 2025 by Forbes in partnership with Statista