Six Ways to Earn Interest on Your Savings: From High-Yield Savings Accounts to Bank Bonuses
Are you tired of your money just sitting in a traditional savings account, earning minimal interest? Well, there are several ways you can maximize your earnings and make your money work harder for you. Here are six of the best ways to earn interest on your savings:
1. High-yield savings account (HYSA): Many banks offer high-yield savings accounts with much higher interest rates than traditional savings accounts. For example, a high-interest savings account could have an APY of 3.75%, compared to the typical 0.19% APY of a traditional savings account.
2. Certificate of deposit (CD): With a CD, you commit a lump sum for an agreed-upon amount of time, during which you cannot deposit or withdraw from the account. CD terms are typically between 6 months and 5 years, with interest rates locked in for the term.
3. Money market account (MMA): An MMA offers the benefits of a checking account, such as writing checks or using a debit card, while also earning interest on the balance. MMA interest rates can be competitive, but they usually have variable rates that can change with the market.
4. Bonds: Bonds are loans to governments or companies, with longer-term bonds typically offering higher returns. However, your money is tied up for the duration of the bond term.
5. Rewards checking account: Some checking accounts offer cash bonuses, cashback, or interest on your balance for maintaining a minimum balance or making monthly direct deposits. These accounts can have APYs similar to high-yield savings accounts.
6. Bank bonuses: Keep an eye out for bonuses offered by banks for new customers. However, be sure to read the fine print to understand any fees or requirements associated with the bonus.
By exploring these options and finding the right mix for your financial goals, you can make your savings work harder and earn more interest on your money. So don’t let your money sit idle in a low-interest savings account – start exploring these options today!
