How to Make the Highest Return on Your Money
Whether you have a few hundred dollars or many thousands of dollars, you want to make the most of every penny. You work hard for your money, and you want to make sure that your money works just as hard as you do. From high-yield checking accounts to money markets and CDs, there are many ways to make your money work harder and squeeze as much interest from every dollar as you can.
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Instructions
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Divide your money into short-term and long-term categories. Money you expect to need within the next five years should be kept safe in a guaranteed account like a money market account or a CD. Longer-term money can be invested for a higher return, but keep in mind that investing in the stock and bond market carries more risk as well.
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Go through all your accounts, including not only checking and savings accounts but brokerage and mutual fund accounts as well. Review the cash you have on hand at each of those institutions.
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Contact the brokerage and mutual fund companies you deal with and ask them if they have a higher-yielding alternative for your cash on hand. Be sure the account you choose provides safety as well as high yield. Many brokers offer FDIC-insured CDs, money market accounts and other alternatives for cash investments.
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Visit the bank where you have your checking and savings account and ask to speak to a bank representative. Ask if the bank offers any checking and savings accounts with a higher rate of interest. You may be required to maintain a higher balance or set up a monthly direct deposit, but the higher yield could make that extra work worthwhile.
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Shop around for better deals, both online and off. Online banks in particular often offer higher rates on checking and savings, since they have lower overhead costs. If you are able to meet the requirements, a high-yield checking account can be a good way to maximize the return on your money. These accounts typically require a specific number of debit card transactions per month, as well as a monthly direct deposit.
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