Skip to content

Invest & Trade Smarter with Fisdom App

Get a FREE Fisdom account for Stocks, Mutual Funds & more, all in one place

Download Fisdom app

How to earn up to 4% more by putting idle money to work

Written by - Akshatha Sajumon

January 21, 2019 2 minutes

Is your money lying in savings bank account? Then you need to read this.

Most of the investors prefer to park their idle money to savings account. The interest rate you get on putting your money into savings account are usually fixed and if you find it difficult to estimate an average return just look are ‘ interest capitalized’ entry in your account statement which usually is printed 2 times one at the end of September and another at the end of March.

If you look at it from an investment standpoint you will notice that it is the east efficient way to hold your idle money. Money in your savings bank account earns merely 4% a year. So let’s take a simple example to understand this, if you have average investment of upto Rs. 100,000 in a savings account you will get Rs. 4,000 as interest. However, you can easily earn ~7% returns a year without taking any risk which means that you can easily earn upto Rs. 3,000 more on an average investment of Rs. 100,000. each year.

So why do investors prefer saving account? Usually, it is because of the liquidity factor. We aren’t sure when we will need the money and hence we want to keep it handy without any hassle.

Now here comes the interesting part, to avoid all the hassle and earn some extra bucks you can easily park your money using your mobile phone into liquid funds. Liquid funds are mutual funds who invest their money in short term government securities with maturity of upto 91 days. Government securities are as safe as depositing your money in banks and they also earn a interest rate of upto 7%.

Just from few clicks you can easily withdraw your money. You just need to place the order and the money gets credited to your account on next day.

Due to flexibility and superior returns your banks will never suggest you about these kinds of products as they don’t make money on this – you do! You can start by moving your balance to liquid funds. Download the Finitywealth app a click on “Park money”

Download one of India's best wealth management apps

Join more than one million investors and take control of your wealth

Download app