In today’s world, every penny counts. But did you know that your bank could be doing more for you? You might be surprised to learn that there are several ways to squeeze more passive income out of your existing accounts.
Here are 9 strategies to turn your bank into a money-making machine:
1. Interest Checking Accounts1
With interest checking accounts, you enjoy the best of both worlds: the flexibility of a checking account combined with the earning potential of an interest-bearing investment. Unlike traditional checking accounts that only hold funds, interest checking accounts allow your money to work for you. They earn competitive interest rates while remaining easily accessible for everyday transactions. Whether you’re a savvy saver or a frequent spender, using an interest-checking account can help you get more out of your banking experience.
2. Savings Accounts
Savings accounts provide a secure and advantageous means for individuals to grow their money while ensuring liquidity. This growth is especially beneficial for those seeking to establish an emergency fund, save for short-term goals, or safeguard their wealth against inflation. Moreover, savings accounts offer peace of mind by offering Federal Deposit Insurance Corporation (FDIC) protection, which ensures deposits up to a specified amount and financial growth.
3. Certificates of Deposit (CDs)2
CDs offer a fixed interest rate for a predetermined period of time. Although access to your funds may be limited, CDs (Certificate of Deposit) can be an excellent way to earn a guaranteed return, particularly on larger deposits. Consider using a CD ladder strategy – investing in CDs with varying maturity dates – to ensure a continuous income stream and have access to some of your cash if necessary.
4. Minimum Balance Bonuses
Some banks offer bonus interest rates if you maintain a specific minimum balance in your checking or savings account. This can provide an incentive to save while increasing your overall earnings. However, ensure you can comfortably maintain the required balance to avoid fees.
5. Bank Account Promotions
Many banks offer special promotions for opening new accounts or meeting specific requirements. This could include cash bonuses, waived fees, or increased interest rates for a limited time. Research and take advantage of these introductory offers to maximize your returns. Don’t forget to compare the ongoing benefits after the promotion period ends to see if the account remains a good fit.
6. Round-Ups with Mobile Banking Apps
Consider using mobile banking apps that offer features that automatically save the difference between your purchase amount and the nearest whole dollar. At Heritage Bank NA, this feature is called Save Up. These small, automatic deposits can add up over time! Look for apps with features that allow you to easily transfer these round-up savings into a high-yield account to maximize your returns.
7. Leverage Automated Transfers
Set up automatic transfers from your checking account to your high-interest savings account. This “pay yourself first” approach ensures that you consistently save money and avoid the temptation to spend that money.
8. Manage Fees Ruthlessly
Many banks charge monthly maintenance fees, ATM (Automated Teller Machine) fees, and overdraft fees. Scrutinize your bank statements and eliminate unnecessary fees by opting for fee-free accounts or adjusting your banking habits. Every dollar saved is a dollar earned!
9. Reassess Your Banking Needs Regularly
Your banking needs can change over time. Regularly assess your financial situation and banking habits. There may be better options available that offer higher interest rates, more rewards, or lower fees. Don’t be afraid to switch banks if you find a better deal.
Implementing these simple strategies can unlock your bank account’s hidden earning potential. Remember, every dollar saved or earned passively is a dollar you can put toward your financial goals. So start exploring your options and watch your bank balance grow!
Disclaimers:
- Interest Checking: When the account qualifications are met, balances up to $100,000 will earn that qualification rate for the entire statement cycle. Balances of $100,000.01 and above will receive that qualification rate for the entire statement cycle. Fees may reduce earnings.
- CD: Fees may reduce earnings. An interest penalty will be imposed for early withdrawals. Not available for public or brokered funds.
