4 ways you could be earning more from your bank
Your bank isn't just a place to store your money; it's a hub of financial opportunities that can help you make the most of your hard-earned cash. And, while the financial tools your bank offers are helpful in nearly any economy, they may be even more useful right now. After all, inflation is still negatively impacting many people's budgets, so it's important to put your money to work if you can.
But while you may think you're getting the most out of your current bank, the truth is that you may not be. In fact, you may be overlooking a few ways to earn more. Luckily, there are simple ways to remedy that issue.
Find out how much you could earn on a top savings account right now.
4 ways you could be earning more from your bank
If you're ready to maximize the returns you earn on your money, here are a few ways to earn more from your bank:
Put your money in a CD account with a high APY
Certificates of deposit (CDs) are a great way to earn interest on your savings while locking in a fixed rate for a specific period. And, right now, numerous banks are offering rates higher than 4.50% on CDs with a range of terms, so if you haven't deposited some or all of your savings into a CD with a top rate, you aren't getting the most out of your bank.
However, not all banks offer the same CD interest rates. While it's possible to find CDs with high APYs, the average rates for 1-year, 3-year and 5-year CDs are well under 2% as of August 21, 2023, so you'll have to shop around to find the top earning opportunities for your money.
In general, online banks or credit unions typically offer the highest rates on interest-bearing accounts, which includes CDs. Online banks don't have as much overhead to pay as big banks with brick-and-mortar locations, so these savings tend to be passed on to customers in the form of higher APYs on their savings.
Explore the top options for earning interest on your savings right now.
Put your savings in a high-yield account
If you're keeping your money in a regular savings account, you're not earning as much as you could be. A high-yield savings account can help your money grow at a faster rate than a traditional savings account — and contrary to popular belief, these accounts don't always come with high fees or maintenance costs.
In fact, there are banks offering high-yield savings rates of 5% or higher on your money. By opening one of these accounts, you have the opportunity to earn a lot more than you would with a regular savings account — which offers an average rate of just 0.42% right now.
And, different banks offer different interest rates on their high-yield savings accounts, so do your research and find accounts with competitive rates. Just be aware of any account requirements and ensure that the potential interest you earn outweighs any associated costs.
Take advantage of cash bonuses
Some banks offer cash bonuses as an incentive for opening a new account or meeting certain requirements. This is an easy way to earn more from your bank — and while you typically won't earn these bonuses for the accounts you currently have open, there may be opportunities to earn them on other types of accounts, or by upgrading your accounts to new ones with the same bank.
But you can also consider opening accounts with the banks that are offering these cash bonuses to earn more on your money. After all, you could get a few hundred dollars in return for simply opening an account at a new bank at the right time.
No matter how you approach it, though, just be sure to read the fine print so you understand what's required. In some cases, this might include depositing a certain amount in the account or maintaining a minimum balance for a specific period.
Switch to a no-fee account
Paying unnecessary fees can erode what's in your bank account over time. And, if you're paying for fees or other charges on your savings, you won't earn as much interest on your money as you otherwise could have.
To maximize your earnings, opt for high-earning accounts that have minimal or no fees — or offer fee waivers based on certain conditions, such as maintaining a minimum balance or signing up for direct deposit. Many online and mobile-only banks offer fee-free accounts, so it may be worth exploring these options to avoid unnecessary monthly charges.
The bottom line
Your bank has more to offer than just a safe place to stash your money. By being proactive and informed, you can earn more from your bank, whether it's by taking advantage of higher CD interest rates, earning more with high-yield savings accounts, getting cash bonuses or keeping your banking experience fee-free. Just remember to do your homework and make sure you understand the requirements. Otherwise, you could pay out more than you're earning in interest each month.
