The interest rates of banks are falling. This should be enough of a signal to make you rethink where you deposit your extra cash. We know that banks help customers gain the interest-earning and also the risk involved is very low. But, one should always look out for opportunities to reap larger returns with higher-risk investments.
In this post, we will go through several ways of investing your extra money. By the end of it, you will have enough knowledge to take your first step towards enjoying better returns for your extra cash. So, let’s get started!
Here are the six places you must consider while investing your money online.
Money Market Account
The money market deposit accounts are known to offer interest rates up to 2.50 percent. While these are essentially savings accounts, they can come along with some additional benefits and restrictions. We highly recommend putting a large sum in the market account to benefit from the stable interest rates.
High-Yield Savings Account
Looking for high-interest rates? High-yield reward checking accounts can be your best bet. These offer high interest rates up to 5 percent and do not require high investment either. You can even open dozens of accounts and put your savings in them to enjoy multiple transactions every month.
Online Savings Account
The online savings account offers an annual interest of 2 percent or more and is considered to be the safest investment that one can do with his/her savings. The greatest thing about it is that around $250,000 is covered by the federal government thus ensuring that your savings are safe.
Certificate of Deposit (CD)
These function at an interest rate of 2.5 percent or higher. This is when the CDs are for 6 months or more. For CDs ranging from one year or more, the interest rates get to nearly 3 percent. We are talking about time-based accounts that are insured by the federal government. The insurance is up to $250,000.
The checking accounts can be created to keep your savings safe. You can have everyday access to it using check-writing and ATMs. You can withdraw the deposits any time you want and your investment will get in trouble. But, checking accounts do not provide a great interest rate and thus are not suitable for people looking for high yields.
Options with More Risk, Volatility
There are many riskier options available in the market. You can invest in Gold for that matter. This is a risky investment because the price of Gold is not stable and can be disastrous if the person is looking to invest for short-term. Some people even think that they can make some money by playing at casino gambling sites but please think twice before considering this option.
Money-making is not a talent. It is a skill that anyone can practice and get good at. The money is there to be made. You need to change your mindset and go after it. We hope this post helped you understand what you can do with the extra money you have saved. Let us know in the comments section if you have any questions. We’d love to hear from you!