How to track and maximise interest earnings on your savings account?

To ensure that your Savings Account has the right features along with a high interest rate, research and compare the different account types and the Savings Account interest rate that they offer.

Maintain a high daily balance

A Savings Account offers regular interest calculated on the account balance. This means that a larger principal balance in your Savings Account can earn more interest.

By maintaining a high balance in your Savings Account, you can generate higher returns in the form of interest, which, in turn, will increase your account balance and maximise your savings over time.

Moreover, the effect of compounding will also help you earn interest on accumulated interest and increase your interest earnings.

Set up automatic transfers

Arranging automatic transfers is another helpful practice that can help you earn more interest.

By ensuring consistent funds transfer to your Savings Bank Account, you can grow its principal value, increase its interest earnings and move closer to achieving your financial objectives.

Minimise withdrawals

Limiting withdrawals from your Savings Account can also help you earn more interest on the same initial deposit.

Fewer or no withdrawals will lead to reinvestment of interest earnings, allowing you to receive increased interest on each compounding period and build significant wealth over time.

Invest in Fixed and Recurring Deposits

To earn additional interest on your savings, invest in Fixed and Recurring Deposits. These secure investment options offer attractive interest rates and compound growth that can significantly increase your annual interest earnings.

This strategic approach will allow you to enjoy higher interest rates for a fixed term and receive guaranteed returns, helping you increase the amount of interest generated on your Savings Account.

The role of tracking your Savings Account in maximising interest earnings

• Monitoring your bank account balance from time to time will help you understand the interest-earning potential of your savings and identify opportunities to maximise interest earnings.
• Tracking the interest earned on your savings will encourage you to refine your saving strategies and invest more. 
• Knowing your Savings Account’s withdrawal and deposit history will showcase your spending patterns and help you adopt new saving habits.
• ● Keeping track of fees and charges (such as transfer and minimum balance fees) deducted from your Savings Bank Account will help you eliminate unnecessary expenses and minimise the erosion of your savings.

Conclusion

Maximising interest earnings requires proper management and regular monitoring of funds in your Savings Account.

Incorporating essential techniques such as opening a high-interest Savings Account, automating your savings and making fewer withdrawals combined with diligent tracking of your account can help you earn higher interest and protect the value of your savings.

Website: https://www.axisbank.com/ 

The pages slugged ‘Brand Connect’ are equivalent to advertisements and are not written and produced by Forbes India journalists.