When it comes to a loan, a high-interest rate can be horrifying. It merely means repaying high equated monthly instalments (EMIs). However, the same high-interest rate is a brownie point if you hold a savings account. Most of the times, when you shop for the best savings account in India, you look for a bank that offers the best rates. Precisely the reason why many prefer savings account as it is the first step in the ladder of investments. There are several banks which offer a savings account with the best interest rates. But do you have your facts straight about the interest rates?
Here is what you can expect from the savings account interest rate that is high:
- What is a high-interest rate savings account?
A high-yielding saving account is nothing but accounts that pay better-than-average rates. However, they come with an additional price tag such as minimum balance maintenance. Some banks offer decent rates at the initial stage. They eventually drop to less-than-average rates at a certain point. In fact, you will find most of the banks that do offer high-interest rates are usually referred to as competitive prices.
- How are high-interest savings account beneficial?
These types of accounts usually come to the rescue when you need funds on an immediate basis. They are easy to acquire especially if you set them up online. Also, they are the safest place to secure your hard-earned money as there are possibilities of tinkering with them. You could use your high-interest savings account to fulfil any medical emergency or to get your short-term goals completed.
- What are the other means to save with high-interest rates?
If you are looking to save money in other financial forms, then fixed deposits are offered by banks. You can earn an equal amount of interest that you receive from a saving account.
- Where can I find the best high-interest rate savings account?
If you know you are going to secure your money in a savings account or an FD, wanting a high-interest is natural. You can do rate shopping on third-party websites where you can check the schemes provided by numerous banks. Most of them are competitive. It also becomes easy for you to make a case to the banks as you will be aware of the offers that other banks have at their perusal. At the same time, pay attention to compound interest rates. Interest compounded daily yields better results than interest compounded on a monthly or yearly basis.
And then you have a savings account calculator to get you out of the hassle. Through the tool you can gauge your potential earnings and check how other banks operate.
Besides, savings account interest rate is not the only factor that determines if you have invested in the right account. Other aspects such as features, additional charges, customer reviews also play a crucial role.