How would you like to make money on your money? Of course, everybody does, and that’s exactly what interest does in today’s modern financial world. However, it sometimes feels like the most lucrative way to make money is to put it into a high-risk investment account that will, potentially, generate interest if the investment pays off. This not a guaranteed way to make money.On the other hand, there are plenty of low-risk ways to make interest on your capital, so if you’re looking to put an extra little bit of money in your back pocket to help you on your journey to financial freedom, these are the methods you’re going to want to know about.
1. Look into Bond Investments
Since this is a low-risk list, if you don’t mind a little risk, always take time to research what bonds can offer you. Bonds are a little different to traditional savings accounts since you can’t withdraw your money at any time, but you can make a lot of money back, especially if they run prize draws, some of which can reach a million dollars.
2. Research Bank Bonuses
Bank bonuses are offers that banks give to new customers when they open an account with them. Research for any potential promotions that could suit you, such as open a new current account that will give you a special interest rate for the first year. You may need to follow certain guidelines, such as paying in a certain amount each month, but if you’re proactive, you can actually make a lot of money this way.
3. Open a Savings Account
Perhaps the most common way of making interest on your money is to open and store your capital in an open savings account. These accounts are easy to open and work in a basic way. You put your money in, earn a little interest, and can take out your money whenever you want. There’s usually some terms and conditions you’ll need to follow, and the interest isn’t really that high, but this is a method that’s as simple as it gets.
4. Open a Fixed Deposit Account
Fixed deposit accounts are a little different to savings accounts. They tend to offer a much higher rate of interest than traditional savings accounts, and are very flexible, meaning you can open an account that suits your personal financial needs. You can also use these accounts to secure loans and save money. Basically, these accounts are well worth checking out.
5. Use an Online Bank
Speaking across the board, online and digital banks tend to offer more interest than traditional brick and mortar banks, so it’s always worth checking them out. Simply conduct an online search and see which online banks offer a service that suits you, and in most cases, you’ll be able to open an account within minutes!
6. Find High-Interest Accounts
These may seem like an obvious point to consider, but you’d be surprised with how passive people are with their bank accounts. If you have an account that offers 2% interest on your money, but another that offers 4%, why would you not move your money over and double how much interest you’re getting? It’s always worth keeping your eyes open for such opportunities.
7. Dabble with Investment Apps
There are a ton of new apps, services, and platforms that have hit the financial market known as fintech apps. These are usually AI-based apps that you deposit some money to save and the AI invests it into various places. You usually get to choose what kind of risk-level these investments have.
In addition to the investment return, you can make over time; many offer a small amount of interest, so you instantly start making money on your money!
8. Look into Rewards Checking Accounts
More and more banks are starting to offer accounts known as ‘reward checking accounts’ which offer higher rates of interest than traditional account, for a price. Whether you need to pay in a certain amount of money each month, if you can meet the requirements, these accounts are well worth looking into.
In truth, there are endless ways you gain more interest on your money and capital, it just depends on how proactive you are with managing your money, and how many opportunities you want to take advantage of.