Even though fixed deposits may seem to be the best investment opportunity, sometimes, you have to have lump sum money that you can use freely anytime. You cannot withdraw the money from your fixed deposits instantly and you are likely to get it in a few days’ time as per the terms and conditions of the financial institutes. Furthermore, there is a penalty involved for withdrawal before the expiry of the agreed term. That is exactly where savings account comes into play. You should open a high yield savings account so that the money you keep there should get the maximum interest. There are various schemes that banks and financial institutes offer to make you open a savings account with them. You need to check and compare multiple offers before selecting a financial institute to open your savings account.
Reasons Why You Should Not Settle For A Low Yield Savings Accounts –
Choosing A Financial Institution – In today’s world, it does not matter in which financial institution you open your savings account, you can withdraw and deposit money from any ATM that is nearby to you. Therefore, you should focus on the offers the financial institutes are offering rather than settling with the nearby ones at whatever interest rates there are offering. But make sure that the institution you are choosing is a reputable one because there are certain institutions that offer a high interest rate but their credibility is questionable.
Understanding The Offers – When it comes to a savings account, the basic norm is that every bank offers a certain interest rate which is generally low. This basic rate is applicable to your entire balance that you have in your savings account all the time. The higher the basic rate, the better it is for you to get maximum return. But it is generally the other perks the banks offer that make you get a better interest. For example, some banks have schemes like if you deposit a certain sum of money every month, you are likely to get double or even triple the interest rate of the basic one. What you are essentially doing is creating a savings account that is acting like a recurring deposit account but there is no lock-in period and no charge for withdrawal.
Card and Net Banking Schemes – Furthermore, there are some offers on cards provided by financial institutes like if you spend a certain sum of money every month using the ATM card they are providing you when you open a high yield savings account, you will earn more interest rate. Similarly, you can get a better interest rate if you do a certain number of online transactions to pay your bills and various such incentives.
You have to watch out for these schemes and offers that you can fulfill and get better returns. Due to competitive markets, the basic interest rate will be low and hence, you have to avail these schemes to maximize the interest rate and the returns on your balance. Furthermore, there are special offers announced during the special days of the year and you need to have such information to be a smart customer.