6 Best Ways To Earn Interest On Your Money in 2024

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.

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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/