Several factors influence your decision when choosing a savings account. The bank’s reputation, internet banking facility, and mobile application are a few vital criteria, but none are more important than the interest rate. The interest you earn on a savings account is extra income, which you can use to meet a few daily and monthly expenses.
Savings accounts with higher interest rates can help you save and earn more, increasing your financial health. Read on to learn more about savings account interest rates and how they work.
- Savings account interest rates are subject to change
Savings account interest rates can change over time. It fluctuates depending on the Repo Rate set by the Reserve Bank of India (RBI). The Repo Rate changes due to several factors, like inflation.
- Banks credit accounts with interest quarterly
The RBI instructs banks across India to credit their customers’ accounts with interest semi-annually or quarterly. Banks and financial institutions are encouraged to prioritise a quarterly interest credit to their customers’ accounts since doing so encourages customers to save more money.
IDFC FIRST Bank is among the few banks in India that offer monthly interest credit.
- Closing bank balance determines savings account interest rate
Following RBI guidelines, banks determine your savings account interest rate daily based on your closing bank balance.
What matters besides the savings account interest rate?
The savings account interest rate is critical for increased savings. But should you select a savings account solely based on interest? Here are the other things that you must consider while choosing a savings account:
- Easy account opening
- Net banking facility
- A secure and convenient mobile banking app
- An efficient customer support team
- Benefits on the offered debit card
- The frequency of interest credits
IDFC FIRST Bank’s Savings Accounts check all these boxes and provide more features to help you save more with your savings account
Why should you opt for a digital savings account?
Here are the reasons why you must opt for a digital savings account such as IDFC FIRST’s Savings account:
- Digital accounts can be opened completely online without visiting the bank branch.
- They are easily paired with UPI (Unified Payments Interface) to let you start transferring money quickly. IDFC FIRST Bank’s Savings accounts also allow free IMPS, NEFT, and RTGS transactions.
- Instant savings accounts offer more lucrative interest rates than digital ones.
- Mobile banking app features such as IDFC FIRST Bank’s One-Swipe Pay and Track Your Expenses features can help customers save more through an instant savings account.
- Digital savings accounts can help you better access your account and track your transactions easily.
Savings accounts have evolved over time. In recent times the digital savings accounts are known as the enhanced version of regular savings account, helping you save more, earn more, and access banking services quicker.