3 ways you're missing out on free money
Finding ways to maximize your income and savings is essential, especially right now, as high (but cooling) inflation and other economic challenges are affecting the value of your money. While earning extra money through hard work is commendable, there are a few opportunities in which you can collect extra cash with minimal effort.
But surprisingly, many people overlook potential sources of free money, and you may be one of them. And if you aren't capitalizing on these opportunities, you're leaving easy money on the table.
By being aware of the opportunities to earn free money, outlined below, you can boost your savings and make the most of your finances. These methods won't make you rich overnight, of course, but they can add up over time and serve as a valuable supplement to your regular income.
3 ways you're missing out on free money
A few of the ways you may be missing out on earning free money include:
Not utilizing a high-yield savings account
If you aren't putting your savings away in a high-yield savings account, you're leaving free money on the table. A high-yield savings account works similarly to a regular savings account, only it offers a significantly higher interest rate.
While regular savings accounts currently earn an average rate of 0.52% in interest, high-yield accounts can generate substantially higher returns. There are several high-yield savings accounts offering APYs of over 4.5% right now — and some online banks and financial institutions offer even higher rates.
By shifting your funds to a high-yield savings account, you can see your money grow at a more impressive rate. The power of compound interest allows your savings to snowball, helping you reach your financial goals faster. Make sure to explore various banks and compare their interest rates and account terms to find the best option for your needs.
Don't miss out on interest. Learn more about your high-yield savings account options here now.
Ignoring opportunities to earn high CD interest rates
Certificates of deposit (CDs) are another often underutilized tool for earning free money. CDs are deposit accounts that come with fixed maturity dates and higher interest rates compared to regular savings accounts. You deposit a set amount of money for a specific period — which can be a few months to a few years or more — and earn interest during that time.
People tend to shy away from CDs due to the inability to access the funds until the maturity date without facing penalties. However, CD rates are currently much higher than they were in recent years. There are numerous shorter-term CDs offering APYs of 5% or more — so if you have some money that you can afford to set aside for a while, CDs can be a lucrative option.
And, by properly managing your CD ladder (a strategy involving multiple CDs with varying maturity dates), you can ensure a steady stream of free income from the interest earned.
Skipping the cash bonuses offered by banks
Banks and financial institutions often run promotional campaigns to attract new customers, and one of the most common is cash sign-up bonuses. These bank bonuses can range from a few hundred to several thousand dollars, depending on the bank and the requirements they set for the account. Shopping around and comparing offers will give you a good idea of how much money you can get for free, simply by opening an account and meeting the requirements.
To qualify for a bank bonus, you typically need to open a new account and meet certain conditions, like maintaining a minimum balance, utilizing direct deposits or making a certain number of transactions. While these bonuses may require a bit of work, it is essentially free money for doing something you would probably do anyway — opening a new account.
Find out what you can earn with a high-yield savings account now.
The bottom line
There are several ways you might be missing out on free money, but the good news is that these are easy issues to fix. By taking advantage of high-yield savings accounts, high CD interest rates and bank bonuses, you can significantly boost your savings without any additional effort. The key is to be proactive in seeking out these opportunities and making the necessary adjustments to your financial strategy.
