1. High-yield savings account (HYSA)
Traditional savings accounts typically have relatively low interest rates, which means your money won’t have a very high rate of return. But, many banks, such as Valley Direct and Western Alliance Bank, offer high-yield savings accounts with a rate of return much higher than a typical savings account.
2. Certificate of deposit (CD)
Another way to earn higher interest on your savings is to put your money into a certificate of deposit, or CD. With a traditional savings account, you can deposit and withdraw money as needed (within the account’s limits). Still, with a CD, you commit a lump sum for an agreed-upon amount of time (called a term), during which you can neither deposit nor withdraw from the account.
3. Money market account (MMA)
Opening a money market account, or MMA, can be another way to earn more interest on your money than with a traditional savings account. Money market accounts offers some of the benefits of a checking account, plus the ability to earn interest on the balance.
4. Bonds
A bond is a loan to the issuing party—usually either a government or a company. The most common types of bonds are U.S. Treasury or Savings bonds, and you keep your money in a bond for a set period. Generally, bonds with longer terms earn you more on your savings since the entity can count on that money for a longer period. But, with a longer term, you cannot access your money for that entire time.
5. Rewards checking account
You might not think of a checking account when trying to maximize your interest earnings, but a rewards checking account can be a good option, like Upgrade Rewards Checking account. This type of account incentivizes you to keep a minimum balance in the account or make monthly direct deposits of a certain amount by awarding you cash bonuses, cashback, or interest on your balance. Depending on your chosen account, you might even see an APY similar to what you’d find in a high-yield savings account.
6. Bank bonuses
It’s wise to keep your eyes peeled for bonuses offered by banks for new customers. You might be perfectly happy with your current bank, but a new bank might provide you with a cash bonus for opening an account with them. However, it’s essential to read the paperwork carefully since some banks charge fees if you don’t meet specific requirements, such as a minimum balance, which could negate any earnings you make from switching.
By Catherine Hiles
Culled From: https://time.com/personal-finance/article/best-way-to-earn-interest/
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