How to Earn More Money in a Savings Account
As the saying goes, you need money to make money, and that's quite appropriate when it comes to savings accounts. Savings accounts, unlike most checking accounts, offer you the opportunity to earn money via interest. Almost all savings accounts come with an interest rate, which affects how much you can earn. To maximize your savings account earnings, you'll have to research savings accounts, and then employ a bit of discipline.
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Instructions
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Open high interest savings accounts. High interest savings accounts result in more money accrued. For example, placing $10,000 in a savings account with one percent interest compounded monthly and letting it sit for $10,000 would leave you with $11,281 after 10 years. If you placed that money in a savings account with 2.5 percent interest, you would have $12,873 after 10 years.
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Meet the minimum requirements for the maximum interest rate. Some savings accounts base your interest rate off of how much money you place in your account. For example, if a bank advertises a 3.5 percent interest savings account, you may have to keep a balance of $15,000 to meet that interest rate. Otherwise, your rate may fall to 1.5 percent.
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Deposit money into the account regularly. Ideally, you should deposit money into your savings account monthly, to maximize your earnings. While the more you deposit, the more you earn, stick to depositing only as much as you can without causing a strain on your finances.
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Avoid transferring funds from savings to checking; you're only decreasing your maximum earnings. If you find yourself constantly taking money from your savings account, deposit less into your savings each month and more into your checking.
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