According to official statistics, over 1.57 billion citizens in our country have savings accounts, which typically offer interest rates of no more than 4% to 5.25%. However, fixed deposits offer higher interest rates, but require a large, one-time investment for a specified period.
To earn higher interest on your savings account without committing to a fixed deposit, you can use the Sweep In method. By fixing a minimum balance in your savings account and leaving any extra money above that amount, you can earn interest rates equivalent to a fixed deposit. This method is offered by all public and private banks under RBI regulations, with interest rates ranging from 7% to 8%. Some small finance banks may even offer up to 9% interest, albeit for a shorter duration.
This method allows you to withdraw your money whenever you wish without incurring any penalty charges. Contact your nearest bank branch to learn more about the minimum and maximum investment limits and duration required to take advantage of this benefit.