Smart Ways to Save Money With a Savings Account
If you open a bank account, you get the freedom to deposit as well as withdraw the funds as per your requirements. Note that the funds parked in a piggy bank remain idle while the funds in a bank account may earn savings bank interest rates. Also, you can get all your bank account details instantly with just a few clicks on your smartphone.
By using a bank account, you can put your funds to work with the aim to enjoy inflation-beating returns. Read on to understand stepwise measures to save money using a savings account.
Set a financial target
One of the best measures to attain any financial goal is to set a defined goal to work towards. In this manner, your plan may become more tangible. Write down how much you aim to save monthly and how you plan on saving this amount. When setting a target, do note the surplus expenses that you incur monthly. Then, concentrate on lowering such expenditures to increase your savings. IDFC FIRST Bank savings accounts are backed-up with various features that help you plan and set up financial planning. Using the e-statement feature you can track your expenses and set up an auto-payment feature to pay your regular bills on time to avoid penalties.
Start a recurring deposit account
One of the best ways to grow your savings faster is through a recurring deposit account. You can open this account with just a few clicks using your net banking account. The concept of recurring deposits is very simple. You just need to select an amount, which will be automatically deducted every month from your savings bank account. The auto debit concept in recurring deposits will continue for a predetermined time, which may range anywhere between a few months and a couple of years.
On completion of the recurring deposit tenure, the whole accumulated amount along with the interest amount is deposited to your savings account. Once the amount is deposited into your savings account, you may either reinvest the fund by opting for the fixed deposit route or withdraw the amount to meet your financial goal.
Use the technology to your benefit
Conducting manual computations with your money may prove to be troublesome and tedious. You may even make manual mistakes. Thus, the usage of technology for this task is a must. You may use the savings account interest calculator available on your banking app to budget your money. Such apps also provide you with insight into your monthly income and expenses. These apps also help you in saving funds based on your financial goals.
Investing is crucial for building a healthy corpus of funds. You may consider distinct forms of investment options such as mutual funds. In case you are new to market investing, you may take the help of financial advisors. An advisor can guide you better and help you prepare the correct investment strategy as per your risk appetite, investment capacity, and financial goals.
With rising inflation, simply parking your funds without earning any significant returns might not be enough post your retirement. Hence, it is important to make good use of your savings account in order to attain financial freedom.