The power of compounding is often called the ‘eighth wonder of the world’, and for good reason. Earning interest on interest can help you exponentially increase your savings. Investors often appreciate the power of compounding when it comes to investments such as mutual funds, but can savings accounts help benefit from the same phenomenon? When you strategically use your savings account, the answer is yes!
Tips to choose a savings account that helps you benefit from the power of compound interest
Here are some tips that you can follow to considerably grow your savings using a savings account:
- Prioritise a high-yield savings account: You must start by shortlisting savings accounts that offer the best savings interest rates. Opting for a high-yield savings account is useful since it helps you compound your savings faster. IndusInd Bank’s Savings Accounts offer an attractive annual interest rate of up to 6.75%, helping customers benefit from the power of compounding. Hence, make sure to opt for an account with a high savings account interest rate.
- Open your savings account online: There are several advantages to opening your savings account online. For one, you can open these accounts instantly. IndusInd Bank, for instance, offers a 100% digital account opening process for the Indus Delite Zero Balance Savings Account using only Aadhaar and PAN card via video KYC. Additionally, banks offer attractive deals and features through their online savings accounts, including relaxed account balance requirements.
- Choose an efficient mobile banking service that offers high accessibility: You must analyse the mobile banking services offered by a bank before choosing its online savings account. Managing your bank account and tracking your expenses forms a critical part of budgeting and saving. You must, therefore, choose a mobile banking app that is secure and offers high accessibility to all banking services.
- Activate the automatic savings option offered by your online savings account: Individuals can reach their financial goals by being disciplined and saving regularly. Features like the Indus Smart Sweep can help you save a certain amount each month by transferring excess funds into a fixed deposit account with a higher interest rate. This feature allows you to benefit from the flexibility of a savings account and the high interest rates of a fixed deposit account at the same time. You must activate this feature to significantly grow your savings using your online savings account.
- You must prioritise good customer service while choosing a savings account: Efficient customer service must be on your checklist while deciding on a savings account. Several banks help customers reach their customer service team through a mobile banking app; however, not all of these services are prompt and professional. You must read about a bank’s customer services online before opening a savings account with them. Resolving important banking-related issues in time can help you make the right savings decisions and eventually help you save more.
- Choose a savings account that offers attractive debit card rewards: You can save a lot of money by maxing the rewards offered by your debit card. Make sure to choose a bank whose debit card offers several rewards to the customer. For instance, the Visa Platinum Debit Card that comes with the Indus Multiplier Max Savings Account offers ₹2,00,000 personal accident insurance and ₹50,000 purchase protection to the customer. It also helps customers transact up to ₹1,00,000 through ATMs and ₹ 2,00,000 through POS (Point-of-Sale) machines. Using such debit card features to your advantage can help you considerably grow your savings.
In conclusion
To benefit from the power of compounding using your savings account, you must choose a high-yield savings account and must choose a bank that offers efficient mobile banking services. You should also open a savings account online to get additional benefits. You should prioritise high security and features like IndusInd Bank’s Smart Sweep that helps you save monthly. Finally, you must prioritise efficient customer service and make the most of your debit card rewards.
