Transfer funds where the idle money get higher interest rate

# Little Savings

We have an assumption that all the banks provide Savings Account interest rate as 4%. But there are few banks which give less than 4% or greater than 4%. 

There are some banks make a slogan of providing 6% interest rate on keeping idle money in Savings Account Eg.Kotak Bank, We have to check ourselves at least once in a month for the banks, the interest rates changes.

Note, in this pandemic(COVID) situtation, all the banks have slashed their interest rates too low.

I found that Standard chartered bank provides only 3.5% on idle money. Even though it is giving less than interest rate, I like it for No limit on the ATM withdrawals. 

I will keep aside max of 10,000 rupees per month for house expenses. But I never keep that money in SCB, I transfer that amount to other bank accounts, where it provides 4% interest rate.

10000 * 3.5% = 29.16 

10000 * 4% = 33.33 

So, I save 4.16 rupees per month and 26.38 rupees per year. We need to consider two points here. 

 # 1. It may seems a small amount, but if you are keeping idle amount of 50,000, you are losing 20 rupees per month or 100 rupees per year. 

 #2. An amount of 2000 rupees will be withdrawn on weekly base for my expenses. So, the calculated amount is not the exact saving amount.

This is for the illustration purpose only. Use the below calculator to calculate your amount by moving funds to the higher Savings Account Interest rate.

Savings Account Interest Rate Calculator