In the pursuit of financial stability and success, it is important to understand how to make your money work for you. Savings accounts provide a secure and liquid avenue to park your money while earning you interest. It can be a valuable tool that serves a variety of purposes beyond just parking our funds. The savings account is where most of us keep our idle money, receive our income and carry out our day-to-day transactions.

Interest earned on your savings account serves as a passive income and it can play a pivotal role in achieving your financial goal. In this blog, we will explore how to leverage savings account interest rates and how they can work harmoniously with your financial strategies.

Best use cases of savings accounts

Online savings accounts serve several essential purposes in personal finance, making them an integral part of our financial activities:

• Emergency fund: The emergency fund is crucial to tackle uncertainties of life. A savings account is the ideal place to park your emergency fund. This fund acts as a financial cushion, providing liquidity for unforeseen expenses like medical emergencies or urgent repairs.
• Short-term goals: If you have short-term financial goals such as saving for a near holiday, purchasing any electronic device or making a down payment on a vehicle, a savings account provides a safe and accessible way to accumulate the necessary funds.
• Liquidity and convenience: Savings accounts online offer high liquidity. It allows you to withdraw funds quickly through ATMs or online transactions. They are also convenient for bill payments and routine financial transactions.
• Parking surplus funds: You can open a savings account to hold extra money while waiting for better investment options. It prevents idle cash from losing value and helps earn at least a modest interest rate.

Normal interest rates on savings accounts

Knowing the typical interest rates offered on savings accounts is crucial before diving into strategies for leveraging them. Historically, the interest rates on savings accounts in India have been relatively modest with most banks currently offering an annual interest rate between 2.5% to 3%. Some banks may offer a higher rate depending on their policy. Usually, it translates to earning around ₹250 to ₹300 annually on a savings account balance of ₹10,000.

However, interest rates can vary significantly among banks and financial institutions in India. Factors such as the type of account, account balance, savings account scheme and the bank’s policies can influence the interest rate you receive. Additionally, interest rates in India can be subject to changes based on the Reserve Bank of India’s (RBI) monetary policy decisions and the prevailing economic conditions.

How can you leverage savings account interest rates to achieve your financial goals?

The savings account opening process has become quite simpler with digital banking. While savings accounts may not offer the highest returns compared to more aggressive investment options such as stocks or mutual funds, they play a vital role in your overall financial strategy. Here’s how you can leverage savings account interest rates in India to achieve your financial goals effectively:

1) Automated FDs

To ensure consistent savings, you can set up automated transfers from your primary savings account online to sweep accounts. Many banks in India offer the option to transfer the excess balance in your savings account and convert it to FD.

For example, the Indus Multiplier Max Savings Account automatically turns balances over ₹20,000 into fixed deposits, offering you higher interest rates. This provides you twin benefits of savings account flexibility and fixed deposit returns. Further, it also provides 25% off on locker facilities. Other perks of this premiere savings account include cashback, attractive offers and complimentary insurance cover worth ₹1.50 lakhs with your platinum debit card.

2) Take advantage of higher interest rates

Opening savings accounts with certain financial institutions, like IndusInd Bank helps you earn highest interest rate on savings account. You can explore the offerings of various banks and consider switching to an account with a more competitive interest rate.

Summing up

Leveraging savings account interest rates in India is an essential aspect of achieving your financial goals. Opening an account with the right financial institution will not only allow you to earn lucrative returns but also benefit from liquidity, safety and accessibility. To make the most of your online savings account, you should use it as an emergency fund, automate your savings and consider high-interest generating options like sweep facility or recurring deposit accounts.

IndusInd Bank pioneer when it comes to providing feature-rich online savings account that minimises your charges and maximises your returns. You can pick any account number of your choice, fill in all the required details, add funds, and complete video KYC from anywhere and at any time. Open your IndusInd Savings Bank Account Now!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

In a world where financial stability is a crucial element of a successful life, saving money at an early stage is a prudent and beneficial choice, along with harnessing the power of a savings account. Whether you are a student or just starting your first job, cultivating the habit of saving money can pave the way for a secure and prosperous future.

This article delves into the importance of saving money from an early stage, outlining the benefits, and providing guidance on how to begin your saving journey as a young professional.

What are the benefits of saving money from the early stages?

Today, understanding the importance of saving money when you start earning can be challenging, as you may be tempted to spend money on your immediate wants, lack of financial education, short-term goals, and many more. It is important to recognise that saving money is the first step to building your financial worth and achieving your long-term financial goals at an early stage with your first job. Here are a few notable benefits of saving money at an early stage of your career:

1. Financial security: Saving early establishes a financial safety net, helping you deal with unexpected expenses. It prevents you from falling into the trap of debt when emergencies arise.
2. Wealth accumulation: Compound interest can work wonders when you start saving young. Your money grows exponentially over time with the compound interest in your bank account. The earlier you start, the more time your investments have to appreciate, potentially making you financially independent sooner.
3. Financial independence: Saving money early can lead to financial independence in the future, giving you the freedom to pursue your dreams and passions.
4. Cultivating discipline: Saving teaches discipline and delayed gratification, essential life skills that contribute to personal growth.

How to start saving money from a young age?

1. Set clear goals: Define your financial goals, whether it is buying a car, owning a home, or going on a dream vacation. Having specific goals motivates you to save regularly.
2. Create a budget: Keep track of your inflows and outflows to identify areas where you can cut back. Allocate a certain portion of your income for savings each month.
3. Automate savings: You can set up automatic transfers from your current account to your savings account. Automating your savings account ensures that you save consistently without the temptation to spend more.
4. Avoid impulse purchases: Think twice and try to avoid making any impulse buys. Consider whether it is a need or a want. Wait 24 hours before making a non-essential purchase to delay gratification.
5. Educate yourself: Learn about different investment options to make your savings work harder for you. Consider consulting a financial advisor for guidance on investment strategies.

Beginning to save early in your life helps you build a significant corpus over the period. But you need the right bank account to start your savings journey. Understanding your needs as a young professional, IndusInd Bank offers a range of savings accounts with features and benefits that discretely align with your needs.

With an IndusInd Bank Savings Account, you get unique services and benefits to maximize your savings. We offer high savings account interest rates, seamless digital access, and a range of banking services designed to meet your daily needs. Plus, with a fully digital application process and video KYC, you can open your savings account online instantly—no bank visit required.

Open an IndusInd Bank Savings Account online in 4 easy steps

Opening an IndusInd Bank Savings Account online is a hassle-free process. You can choose to apply either online or by visiting their nearest bank branch. Follow the 4 easy steps below to open an IndusInd Bank Savings Account instantly.

Step 1: Pick any account number of your choice

Click on ‘open my account’ and enter the mobile number you want to link with your bank account.

Step 2: Fill in the required details

An online form will pop up on your screen once you verify your mobile number using the OTP generation process. Fill in all the necessary details and proceed.

Step 3: Fund your account

You can add a desired amount to your savings account online while the account opening itself using a payment gateway and starts earning interest.

Step 4: Video KYC

You can complete your KYC process from anywhere. With video KYC, the bank executive confirms your identity by ensuring that all necessary checks and verifications are conducted.

Things to keep in mind when opening a savings account

A savings account ensures that you have a safe place to store and grow your money. Here are some important things to consider when opening a savings account online:

1. Fees and charges: Be aware of any fees associated with the account, including maintenance fees and transaction charges. Maintaining complete transparency, IndusInd Bank offers affordable and minimal charges on savings accounts.
2. Interest rate: Check the interest rate offered on your savings account. A higher rate means more growth for your money. IndusInd Bank offers one of the highest interest rates on savings accounts to enhance your savings. Explore savings account interest rates.
3. Online security: Ensure the bank’s website has robust security measures in place to protect your financial information.
4. Accessibility: Confirm that the bank’s online platform is user-friendly and accessible via mobile devices.
5. Customer support: Opt for a bank with responsive customer support in case you encounter any issues.
6. Offers and merchant discounts: Savings accounts today also come with several offers and discounts on online shopping. Check various offers and privileges while opening a bank account.

For instance, the Indus Delite Savings Account provides exciting discounts on debit card expenses. The best part is that you can open this account instantly through the Indus Mobile App or net banking.

Conclusion

To achieve your financial goals, it is important to contribute to your savings and set clear goals from your first job. The benefits of financial security, wealth accumulation, and increased independence are invaluable. By setting clear goals, creating a budget, and automating savings, you can easily bring financial discipline and save money.

Furthermore, opening a digital savings account instantly with IndusInd Bank is now simpler than ever, thanks to online banking. The journey to financial stability and independence begins with the first step of saving money early. Start today, and open an IndusInd Bank Savings Account, and you will be well on your way to securing a prosperous future.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.

What is a savings account?

As the name suggests, a savings account is a type of bank account that you can use to keep your saved money. A savings account is easier to manage and can be accessed from your mobile device using the bank’s application. Also, you get attractive interest rates on account balances and deposits.

Prominent features of savings accounts include the following:

• No compromise on liquidity: Your money is available to use anytime you want.
• Achieve financial goals: You can save money for short-term and long-term needs by earning interest.
• Added benefits: You have access to facilities like chequebooks, debit cards, bank lockers, and more.
• Credit facilities: You have access to various credit facilities such as loans, purchases through EMI, and credit cards.

Benefits of a savings account

1. Separate personal and professional finances

A separate savings account for your business is beneficial as it allows you to distinguish between your personal and business expenditures. You can keep track of your business cash flow independently of your monthly expenses.

2. Earn interest

Parking your funds into a savings bank account allows you to earn interest. For example, IndusInd Bank offers attractive interest rates on savings accounts to help you beat inflation. Thus, a savings account is a good option for putting your money to work while keeping your savings liquid.

3. Banking features

You can use banking features, such as UPI, NEFT, IMPS, and RTGS, with your savings account. You can also use your bank’s mobile application to recharge your phone, pay bills, and book flight tickets. Also, you can earn rewards when spending through your debit card.

4. Your money is protected

The money deposited in the savings account is protected. Bank deposits up to ₹5 lakhs are secured by the Deposit Insurance and Credit Guarantee Corporation (DICGC). Therefore, you can be assured that your savings will stay safe and you can plan your business growth accordingly.

5. Prepare for unexpected events

As a small business owner, you may face unexpected expenses. Maintaining funds in a savings account helps you deal with unforeseen circumstances. Your money is liquid, allowing you to use the funds whenever required. You can quickly transfer or withdraw money from your online savings account as needed.

6. Expand your business whenever required

Having an online savings account helps you get into the habit of saving money that can be used later for business expansion. If you save money regularly, you can avoid taking loans when you wish to expand your business. These savings can be used for hiring top talent, creating a website, running ads online, and more.

Things to consider before opening a savings account

1. Minimum opening amount

Some banks require you to deposit a minimum balance before activating your savings account. You should select a bank that has a minimum opening amount required.

2. Services offered

Savings accounts offer various services such as debit cards, chequebook facilities, balance sweep facilities, internet banking, and more. The world is becoming more digitised every day, so getting all these services will make your banking experience hassle-free.

3. Frequency of withdrawals

Many savings accounts have a limit on the number of withdrawals you can make in a month. If your business has frequent transactions, select a savings account that allows more transactions to avoid penalties.

4. ATM facility

Some savings accounts do not provide the feature of withdrawing money from another bank’s ATM. If you need to withdraw cash from an ATM often, selecting a bank that allows withdrawing money from any ATM is ideal. However, after a specific limit is crossed, the bank may charge some fees for withdrawing cash from other banks’ ATMs.

5. Account-related fees

Typically, a savings account does not have any fees. However, some savings accounts may impose certain fees, such as ATM withdrawal fees, branch deposit fees, cash deposit fees at a non-home branch, etc. You should look into such charges before opening a savings account.

Get started with the Indus Delite Savings Account

Having a separate savings account for your business has numerous benefits. Click here to learn about the various benefits offered by the Indus Delite Savings Account. Indus Delite Savings Account from IndusInd Bank can be a perfect choice.

Follow these steps to successfully open your savings account online:

Step 1: Pick an account number of your choice

Click on ‘Open my Account’ and enter the mobile number you want to link with the bank account. This number will automatically become your account number. You can change it to any 10-digit number of your choice later.

Step 2: Fill in your details

You will be redirected to an online form once you verify your mobile number using the OTP generation process. Fill in the details and proceed.

Step 3: Fund your account and start earning interest

You can add a desired amount to your savings account and start earning interest on your money. Additionally, your funds will be kept safe and you can access them anytime you want.

Step 4: Video KYC

You can complete your video KYC process from anywhere. When you start the video KYC, a bank executive will capture your live video with your PAN card. You may be required to put down your signature on a blank piece of paper, and the bank official will take a photo of your signature for e-signature purposes.

Bottom line

A savings account may have various advantages. Savings accounts for enterprises provide a secure option to park your accumulated funds. This money can be used later to even grow your business or achieve your future goals. Till then, you can leverage your savings to earn interest.

Apply now for an IndusInd Bank Savings Account and become a financially secure business owner!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.