No bank can
ever give you the highest interest rate saving account if you are
not an effective saver yourself. The first step always begins with you saving
every penny you earn or inherit. Of course, we all have our ways of saving.
Some of us may sacrifice that delicious Mocha Latte while some may skip a
birthday bash to save those pounds; others may give up on the idea of vacation
via road trip and rather choose a means of public transport.
Below given
are a few tips to boost your interest rates. Check them out for yourself.
- No more traditional banking: These brick-and-mortar banks have loads of
overhead costs like paying the office rent or purchase and maintenance of an
official building and infrastructure, paying the personnel and other staff,
utility bill and lots more. So it is time to switch to online-only banks. These
banks save a lot of overhead costs and channelise it to their customers in the
form of high-interest. Take advantage of these online-only banks and be an
effective saver.
- Build a CD ladder: This requires you to split your money and put
it in different Certificates of Deposits (CDs) with different term lengths. CDs
may not have the highest interest
rate savings account but it is
better than what your banks offer on regular savings. A CD ladder offers more liquidity than
locking all your money into a single CD. It also minimize your risk and allows
you to earn a higher return rate than you would get with a regular savings
account.
- Don’t overspend: It is alright if you have to buy gifts for friends and
relatives for their birthdays and anniversaries and make occasional payments
for insurance premiums, etc. But we warn you against overspending or indulging
in unnecessary things like taking a flight instead of a train, a vacation to an
exotic location when you can visit a scenic site which is close to your
residence or city and you haven’t unexplored, and so on. You could also try
combining work-pleasure trips or if your employers organise a vacation the cost
(partial or full) of which will be borne by them.
- Set short-term goals: The fact is that people tend to save more and successfully when they have short-term goals. Having long-term goals can be weary and the motivation factor could diminish after a few months and you could end up using the amount for some other purpose. This way you could have the highest interest rate savings account ever possible.
There is nothing that can hold you back
from becoming an effective saver if you follow our tips to the ‘T’. Stay with
us for more on https://savingaccount.in/blog/digital-bank-account.
