Advertisement
Sections
Why having a High Interest Savings Account is Beneficial?
However, a high interest savings account offers higher interest than a conventional savings account.
A high-yield savings account is not just about parking your money in a safe place. A high interest rate offered with such an account can help you grow your wealth faster than the conventional savings account. You get the perks and stability of a savings account along with higher interest for enhanced returns. These accounts are especially useful for creating emergency funds while working towards a specific financial goal. Let us understand why high interest savings accounts are beneficial and how you can apply for them.Workings of a high interest savings accountA high interest savings account works similar to a conventional savings account where interest is calculated on the daily closing balance and credited at a fixed interval (quarterly, half-yearly, or annually). Indian banks normally offer interest pay-out at a quarterly interval. However, a high interest savings account offers higher interest than a conventional savings account. This feature makes such an account exclusive and useful for varied individuals. Along with considerably higher returns, IDFC FIRST Bank also offers a monthly interest credit where you receive your accrued interest at the end of every month. Benefits of high interest savings accountSavings accounts provide a stable and safer venue for stashing your money where it grows over a period of time with interest earnings. But with a high interest savings account, such as those offered by IDFC FIRST Bank, you can build considerable wealth in a shorter duration. Key benefits of high interest savings accounts are –
- Compounding effect – The funds deposited in a high interest savings account earn interest daily. It means that the savings account interest rate is calculated on a daily basis and deposited at a specific interval. The interest gets compounded after every interval, offering higher returns. The monthly pay-out from IDFC FIRST Bank makes compounding more frequent, thus providing enhanced returns.
- Safer option for parking money – High interest savings accounts offer guaranteed returns and thus provide a safer venue to park your money. The interest rates may revise depending on the economic situation in the country and RBI’s repo rates. However, with a growing economy and post-pandemic recovery, the rates are likely to increase in the future. IDFC FIRST Bank offers up to a 7% interest rate on savings accounts which is higher than a conventional savings account.
- Liquidity – Unlike FDs, where the deposits are frozen for the entire tenure, the money in a high-yield savings account is accessible anytime, anywhere. Using net banking and mobile banking, you can have access to your funds round-the-clock even during public and bank holidays.
- Pay utility bills – You can use a high interest savings account to pay utility bills on the go. The IDFC FIRST Bank mobile app offers an integrated facility to pay all your utility bills in one place. You can set up a standing instruction and use the autopay facility for all your regular payments.
- Access to a variety of banking services – With a high-yield savings account, you also get access to numerous banking services such as online fund transfers, cheque payment facilities, debit cards, and funding other investments such as fixed deposits and mutual funds. Depending on the bank, you may need to pay a nominal charge, but IDFC FIRST Bank offers the ‘Zero-Fee Banking’ facility* on 28 commonly used savings account services including ATM withdrawals, money transfers at branches and via net banking, third-party cash deposits, and more. Zero Fee Banking is available on savings accounts with ₹10K AMB (Average Monthly Balance) and Rs. 25K AMB subject to the maintenance of average monthly balance in the account.
First Published:Aug 08, 2023, 13:36:21 IST
Advertisement
Advertisement
IEA predicts major oil surplus in 2027 as Hormuz reopening sparks supply rebound
After the world’s biggest oil disruption triggered by the Iran war, the International Energy Agency expects global crude supplies to recover sharply, with output growth far outpacing demand and creating a potential 5 million barrels per day surplus in 2027.
2 min read
CNN-News18 Launches #CNNNews18OneLess, Inspiring India to Turn Small Actions into Big Environmental Impact
CNN-News18 launches World Environment Day campaign CNNNews18OneLess, urging simple daily actions to cut environmental impact, with special shows and pledges from viewers and anchors
2 min read
Sensex crashes over 1,000 points; Nifty tumbles 359 points in late sell-off
Late-session sell-off rattles Dalal Street as investors rush to book profits ahead of the weekend; oil, metal and banking stocks lead losses while IT remains resilient.
2 min read
Hindware wins case against Google, Delhi HC fines tech giant Rs 30 lakh for trademark infringement
Court rules Google's keyword advertising model cannot monetise a rival's trademark; says invisible search triggers amount to trademark use under law
3 min read
Best Ways to Get Exposure to Gold in India?
For most Indians, gold is more than just an investment; it is tradition, security, and a long‑term store of value. Until recently, building gold holdings usually meant buying jewellery, coins, bars, or using products like digital gold, Gold ETFs, and gold savings schemes.
4 min read
Advertisement
Advertisement