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Savings are often considered a means to protect your money from being spent. While this is undoubtedly true to a large extent, modern financial products and practices are changing things for the better. Now, you can make use of various easy little strategies to earn money even while you save it in a good old savings account.

While the rate of growth may not be as exponential as that offered by investments, it’s still decent enough to consider. This way, if you are saving money for a big purchase or a lump sum investment, you can allow your savings to grow.

Here are 5 tips that can help you earn more even as you continue saving your money:

1. Choose a high-interest savings account

Savings accounts typically offer interest at the rate of 3% to 4% on the savings. However, with certain high-interest savings accounts, you can earn interest at much higher rates — often as high as 6% or so. By choosing this kind of savings account, you can earn more on your average savings account balance.

For instance, assume you have an average balance of Rs. 1 lakh in your account. In a low-interest savings account, at a rate of say 3% per annum, you will only earn Rs. 250 per month. However, in a high-yield account with an interest rate of 6%, you get twice the interest (Rs. 500).

2. Maintain a high monthly average balance

Merely having a high-interest savings account is not enough. You need to actually maintain a sufficient balance in your account to take advantage of this feature. Needless to say, the higher the balance you maintain, the higher the interest you will earn on the savings you’ve made.

By combining a high-interest savings account with a high monthly average balance, you can truly make the most of your savings. Also, many banks follow an incremental interest rate schedule, so you may qualify for higher interest rates if your balance exceeds a specified limit.

3. Or, opt for a zero balance account

Many savings bank accounts come with a minimum balance requirement. This sum can range from Rs. 10,000 to Rs. 1 lakh or more. If you do not maintain this minimum balance in your account, you will have to pay penalties as set by the bank. This could set off any interest you may earn from your savings.

If you are not sure whether you will be able to maintain the required balance throughout the month, you can always opt for a zero balance account (if you are eligible for the same). This will ensure that you can continue to earn interest on the balance you may have, without worrying about any penalty for non-maintenance of the minimum balance.

4. Use an auto-sweep facility

Want the high interest that comes with a fixed deposit but also the flexibility and liquidity of a savings account? An auto-sweep facility gives you just this. It combines the best features of a savings account and a fixed deposit. When the auto-sweep facility is enabled, a predefined limit is set for your savings account.

If the balance goes above this limit, the excess is swept into a deposit that offers higher interest than your savings account. And when your account balance falls below this limit, the money from the deposit is swept back into the savings account.

5. Open more than one savings account

Having more than one savings account may not directly help you earn more. However, you can keep a separate account for your expenses (preferably a zero balance account) and a separate account for your savings (preferably a high-interest account). This will make it easier for you to plan your transactions and savings smartly and more efficiently. It will also ensure that your high-interest account continues to accrue interest since you will not be using the money in that account to meet your expenses.


These pointers should help you earn more on your savings. You can start with small steps towards this end goal. For instance, once you have a high-interest savings account, you can slowly and steadily focus on maintaining a high balance therein to improve your earnings. And sooner than you realize, you’ll be earning much more on your savings than you are now.

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