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10 Best Saving Bank Accounts to Earn Maximum Interest

Saving bank account is the most preferred method to keep extra money but saving bank accounts only gives interest in a range of 4-6%.  What to do to earn maximum interest. Well, today we will discuss 10 best savings bank accounts with an auto sweep facility that can earn more interest.

Saving bank accounts are a crucial aspect of personal finance, offering a safe and convenient way to store money while earning interest. In a country like India, where financial stability is highly valued, choosing the right saving bank account can make a significant difference in optimizing one’s savings.

Saving bank accounts are designed to encourage saving habits among individuals by providing them with a secure place to deposit their funds. These accounts offer a modest interest rate on the deposited amount, making them an ideal choice for short-term savings goals and emergency funds.

Importance of Earning Maximum Interest

Earning maximum interest on your savings can help your money grow over time, outpacing inflation and increasing your purchasing power. With the right saving bank account, you can harness the power of compounding and watch your wealth accumulate steadily.

Factors to Consider Before Choosing a Saving Bank Account

Interest Rate

The interest rate offered by the bank is one of the primary factors to consider when selecting a saving account. Higher interest rates mean more significant returns on your deposits, allowing you to maximize your savings potential.

Minimum Balance Requirement

Some banks impose a minimum balance requirement on saving accounts. It’s essential to choose an account with a minimum balance that aligns with your financial situation to avoid unnecessary charges or penalties.

Additional Benefits

Apart from interest rates and minimum balance requirements, consider other perks offered by the bank, such as cashback rewards, discounts on shopping, or complimentary services like insurance and bill payments.

Auto Sweep Facility

Auto sweep facility provides the combined benefit of saving bank accounts and fixed deposits. This facility interlinks your saving bank account with a fixed deposit account.

This facility makes sure that extra money crossing the threshold limit defined by you will automatically get transferred to a fixed deposit account and you will earn a better returns.

5 Best Kids Saving Account

Auto Sweep

Example How Auto sweep facility can earn you more return?

Suppose your saving bank account has Rs. 1 lac for 1 year. In a normal saving bank account, it will earn interest 4% which is Rs.4000 for year.

If you have an auto sweep facility with a threshold limit of Rs. 10,000 than an additional Rs.90000 will form a fixed deposit and earn 8% interest.

At year-end you will earn Rs. 400 interest earned from Rs. 10,000 plus Rs.7200 interest earn from Rs.90000. So Total interest will be Rs.7600 which is far greater than the interest earned in the first case.

Accessibility and Convenience

Consider the bank’s accessibility and convenience, including online banking features, ATM networks, and customer service availability. Easy access to your funds and account management tools can enhance your saving experience.

Difference between MICR and IFSC Code

10 Best Saving Bank Accounts to earn maximum interest

Today multiple banks provide auto sweep facility but they name it differently. HDFC bank calls it Sweep-in. ICICI bank calls it money multiplier and SBI calls it saving plus. Below is list of 10 Best Saving accounts which can earn maximum interest.

How to Open a Saving Bank Account

Opening a saving bank account is a straightforward process that can be done online or by visiting the nearest branch of the bank of your choice. You will need to provide certain documents, such as identity proof, address proof, and passport-sized photographs, as per the bank’s requirements.

Tips to Maximize Savings

  • Set up automated transfers to your saving account to ensure regular deposits.
  • Take advantage of promotional offers and bonuses offered by the bank.
  • Monitor your account regularly and review your financial goals to adjust your savings strategy accordingly.
  • Consider diversifying your savings portfolio by investing in other financial instruments like mutual funds or fixed deposits.

Conclusion

Choosing the right saving bank account is essential for maximizing your savings and achieving your financial goals. By considering factors such as interest rates, minimum balance requirements, and additional benefits, you can select an account that suits your needs and helps you grow your wealth over time.

FAQs

  1. Are saving bank accounts safe? Yes, saving bank accounts are considered safe as they are regulated by the Reserve Bank of India (RBI) and offer deposit insurance up to a certain limit.

  2. Can I open multiple saving bank accounts? Yes, you can open multiple saving bank accounts with different banks to diversify your savings or take advantage of various offers.
  3. Is there a penalty for not maintaining the minimum balance? Yes, some banks may impose penalties or charges for not maintaining the minimum balance required in the saving account.
  4. Can I withdraw money from my saving account anytime? Yes, saving accounts offer liquidity, allowing you to withdraw money whenever needed through ATMs, branches, or online banking.
  5. How often do saving account interest rates change? Saving account interest rates can vary depending on economic conditions and bank policies, but they typically don’t fluctuate as frequently as other interest rates.

LICMobile Good App by LIC

LICMobile

LIC most trusted Insurance Brand of India has launched Mobile Apps for android phone.This app is called as LICMobile. This app is developed for LIC’s esteemed customers and Marketing personnel.

If you are customer of LIC you must install this app on your mobile. This app provides all information about LIC products and services on fingertips.This app also provides options for viewing LIC products, premium calculation, Premium comparison and many more features.

LICMobile App Features:-

(1)   LIC Plan Details:-

LICMobile provide facility to view all LIC plan at finger tips. You can select any plan like endowment, money back, children plan etc and navigate to plan details and features of specific plan.

LIC Plan

(2)   Premium Calculator:-

LICMobile also provide facility to calculate premium online. Just select the plan & age input sum assured and press calculate premium it will instantaneously give you Yearly, Half yearly, Quarterly and monthly premium details.

premium calculator

(3)   Premium Payment:-

LICMobile provide facility to pay LIC policy premium at fingertips. Just fill policy detail like policy number, premium, DOB, email id and mobile number and you will be directed to payment gateway where you can pay your premium by doing online transaction.

(4)   Customer and Agent login

LICMobile also provides facility of customer and agent login. Customer can login via app to see enrolled policy, premium payment calendar & old payment transactions.

customer login

In Agent login Agent can see policy status view for policies under agency. It will also give Weekly premium due list for agents

(5)   LIC Branch Contact Information

LICMobile gives you facility to get branch details and customer contact information zone wise.

What are you waiting for download this free app of LIC from Google Play.

Hope you enjoy reading about LICMobile do share this app detail with your friends and relatives.

3 Different Investor types – Which is Best?

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Investor Types

Last Sunday I have visited my friend and we had discussion about Investments and Investors. Our discussion points were –

  • How different type of people does investment and what are investor types?
  • Why only few investors make more money than other?
  • What it takes to be a true investor?

Well after long debate we could make out three different investor types.

Different Investor Types-

Type-3 investor

Type -3 Investors are not financially educated or sound in terms of finance. They often seek advice from friend, relatives for investment. These investors are from usually job oriented mindset and they make investment from retirement & money saving prospective.

They don’t know much about investment & finance and they have to rely on the advice of so-called experts.

What do you think Type-3 Investor can become financially free ever?

 Type-2 investor

Type-2 Investor are bit aggressive they take interest in finance and often ask question before doing investments. These questions are like:-

  • Where do you think I should invest my money in?
  • Do you advice to buy real estate?
  • I have few share of XYZ company should I sell them?
  • Which stock I should buy for 5 year prospective?
  • Everyone advice to diversify portfolio what do you think?

Type-2 Investor take advice from professional experts or domain expert before making investment.Type-2 investor should interview several tax advisor, financial planners, stock brokers and real estate experts before deciding anything. Type -2 investors must see that investment advice is genuine and not given only to earn commission.

High income employees and self-employees fall in this category because they have less time to look for good investment opportunity.

Type-1 investors

Type -1 investor’s opportunist they are always looking for good investment opportunity. Types -1 Investor are smart and they know every aspect of investment and asset class. Examples of type -1 investors are ‘Rakesh Jhunjhunwala’ or ‘Warren Buffet’.

Type -1 investor are very good at number. They do lot of research before making investment. Type -1 Investor are very successful in terms of investments.

What type of investor are you?

In order to know what type of investor you are you have to ask simple question.

  • Do I have full knowledge about asset class where I am investing money?
  • My investment decisions are based on what?

If you do not carry enough knowledge about finance and often take advice from friends and relatives you are in Type-3 investor.

While doing investment if you take advice from financial planners, stock broker or any professional experts than you can consider yourself as Type-2 Investor.

If you are independent in terms of doing investment after gathering advice from expert & after carrying proper analysis and study you are Type -1 Investor.

Of course you need lot of financial education and network of financial expert in order to become Type-1 and Type-2 Investor. You should start working in that direction become financially independent.

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5 Qualities to Become Wealthy

How_wealth

Everyone today wants to become wealthy & they are seeking secret to become wealthy. Well there is no such secrete, it is a way of being. And this requires constant growth and reorientation.

We have carry out research to know how what qualities it takes to become wealthy. So if you are poor and want to know how people born into poverty eventually become wealthy this post is for you.

5 Qualities to Become Wealthy

1. They make long term plan & vision

Study reveals that wealthy people always make long term vision and plan. They know that they will achieve financial success by making dream or vision. They make plan and follow it. They regularly assess situation and take important decision accordingly.

2. They use power of compounding

Wealthy people know how to multiply money and power of compounding. They invest money early. They don’t touch money for long term. They avoid making move from one investment to other frequently.

3. They Invest in Asset

Wealthy people know difference between asset and liability and they always invest in asset. Cash flow pattern of wealthy is like income goes in to investment of asset which generates more money. So if you want to be wealthy start investing in asset.

4. They build source of passive income

Another quality of wealthy people is they are always looking for extra source of money and passive income.  They build multiple source of income.  They know how to make money work for them.

5. They believed in delayed gratification

Rather than get everything they wanted right now, these people were willing to make short-term sacrifices to gain long-term success, which is the basis of delayed gratification.

So if you want to become wealthy start following these qualities of wealthy people.

wealthy

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