When you have money in a savings account, you’re likely to get a small amount of interest on it. Unfortunately, the interest you accrue may not be enough to cover your expenses. Low interest rates mean that’s definitely the case.
The money you’ve saved may actually lose purchasing power over time if your income falls below the inflation rate. However, no matter what the state of the economy is, there are always opportunities to make extra money. For those who have some money saved up and wish to increase their yields without taking on too much risk, here are some options to explore.
Switch To A High-Interest Savings Account
Some banks provide special, high-interest savings accounts with rates that are much higher than ordinary accounts.
Online banks are a great place to search for high-interest savings accounts. Online banks, which benefit from cheaper expenses due to the disappearance of brick-and-mortar branches, seldom impose monthly fees and often provide rates that are much higher or higher than those offered by conventional banks. Another advantage of using online banking is that it puts your money out of sight and out of mind, making it simpler to resist the urge to spend it.
Invest In The Stock Market
The only people who should consider this particular idea are those who have a lot of experience with investing or are willing to work with a professional advisor such as Fair Forex to help them grow their money. With cryptocurrencies like Dogecoin rising and then crashing in a matter of hours, this year’s stock market has been a roller coaster. This is why it’s important to know what you’re doing before you invest anything at all. However, if you get it right and you’re patient (investing won’t make you rich overnight), then it could be an ideal way to earn more on your savings. Plus, many people who try it find it fun to get involved in.
Consider Buying Bonds
Instead of a standard savings account, you could put your money into bonds, which carry a degree of risk and limit the amount of money you can withdraw, but which can be a good option in the long term.
An investment in bonds is similar to borrowing money from the business or government that issues them. If you hold the bond to maturity, you will get a return on your initial investment plus any interest. If you want to invest in bonds issued by major corporations, you can do so by purchasing US Savings or Treasury bonds. Each has a varied interest rate and payback schedule, with more risky bonds offering higher rates. Yields are often higher on long-term bonds and corporate bonds with a greater chance of default.
Bonds can lose value as interest rates rise, so it’s important to keep this in mind. A bond’s price fluctuates in the opposite direction of its interest rate. This means you may end up selling your bond for less money than you purchased if you do so before the bond matures. If you’re looking to raise the interest on your investments while accepting a bit extra risk, bonds are an excellent option.