Over the last decade, savings account interest rates and remained the same, for the most part, but during the same period fixed deposit interest rates have dropped, PPF deposit rates have also seen a cut & a proposal to make such age old savings schemes taxable was also announced.
With market instruments always involving risks and/or lock in period, what can be considered a safe investment? Savings accounts have evolved as a product to simplify your investment needs and serve as a single point of contact for your investments and savings alike. With attractive interest returns that are at par with some of the most lucrative long term saving options, savings accounts also offer the added advantage of unmatched liquidity.
With complete and uninterrupted access to all your savings, the primary purpose of saving money for an unforeseen emergency or planned financial goal is also met. Most long term saving account have a lock in period to guarantee you higher returns but if you need your funds at any point during the investment period, prematurely liquidating the investment would mean penal charges being levied and in some cases, a lower rate of interest than what was promised.
With a savings account, you are not bound by a lock in period. Simply deposit and withdraw money as your please and enjoy a fixed interest on the entire balance that you maintain. Some of the added advantages that a savings account provides is internet banking facility that lets you transfer funds, set standing instructions, make bill payments and make service requests from your desktop or mobile device. You also get a debit card that can be used at any ATM across India and abroad to access cash and also make point of sale purchases.
With a host of attractive rewards and benefits, a savings account offers unparalleled security and complete access to your money any time you need it. After all, what good are savings if you can’t use them in your time of need. You can earn attractive returns of up to 7% on your savings account balance so just keep your money in your account and enjoy complete peace of mind.
One response to “Can Long Term Savings Account Ever Offer Better Returns?”
Long term saving plans are passive ways to try to make a win. Usually they are low risk tools, but seldom can offer decent profit. I think they are for people, who trust on banks and think that even if they cannot profit, it is somehow a good move!