If you are keen to make your money go further, then one of the essential things you should aim to do is to try and earn as much interest as possible on your spare cash. What you really want to aim for is compound interest. This is when your interest gains interest, and it is the primary goal of many investors to get as much of this as possible. If you can achieve that, you are going to find that your money really is going a lot further, so it’s something you should definitely focus on. Let’s take a look at the best ways to earn interest like this.
Online Savings Accounts
Many banks offer online-only savings accounts, which you cannot access by going to a physical bank, and these often offer higher interest rates than you might be used to in other savings accounts. That’s because there are fewer overheads for the company itself, so they are able to pass on that saving to you in the form of a better interest rate. So if you are going to be trying out a savings account, this is the best way to do so, as it is going to be much more likely that you can earn a decent amount of money.
HYSA
A high-yield savings account (HYSA) is exactly what it sounds like: a growth account where your cash can earn a decent amount of interest. This is often an attractive alternative for many people, partly because of those potential returns and partly because the cash is immediately available in a HYSA, with a few limitations but mostly so. You might want to therefore consider this kind of account for yourself. It could be one of the best ways to make your money go further, especially compared to a normal savings account.
Bonds
Buying a bond is a little like making a loan to the government, and you are banking on them being able to pay you back. But here’s the kicker - when they do pay you back, generally it is going to be with quite a lot of interest added to it, so that is something that you can use to really start earning a lot of money. It’s well worth looking into bonds to see whether you can effectively make money this way. You might be surprised about how powerful this really can be, and it’s definitely something to think about. It is also low-risk.
Invest In The Stock Market
One of the most lucrative potential ways to earn compound interest in particular is to invest in the stock market. This seems frightening to a lot of people, but with the right help and a lot of patience you should be able to do it yourself. What’s more, it is one of the most likely ways to earn financial freedom, so it is definitely worth thinking about if you want to aim for that. All in all, you’ll find that you might start making quite a lot of money quite fast this way.
