Are you looking to increase your savings in 2020? Increasing your bank balance can be as straightforward as relaxing and letting your money work for you — as long as you have the proper tools in place. If you would like to create a cash cushion without breaking a sweat, then try these 3 approaches.
Interest On Savings Accounts
The rate of interest offered on savings accounts from most brick-and-mortar banks is significantly less than one-tenth of a percentage. If you place your money in a high-yield account, you can earn more than 20 times the amount.
Putting $10,000 in an account which earns the typical rate of interest, makes a couple of bucks annually. But if you deposit the exact same amount in an account which has a 2% annual return, you will earn almost $100 more. Online banks and a few credit unions have a tendency to offer a greater interest rate, and the simple checking and savings accounts normally do not have monthly charges.
Automated Payment Plan
As soon as you have a savings account which earns at a good rate, install an automated payment plan to make normal deposits. This does not count the extra interest your savings will make.
Here’s how to get started. Log into your checking account or savings account online and pick the choice for bank transfers. You will typically pick the total amount of the trade, frequency and time interval. Though the receiving and sending accounts do not need to be at the same bank, ensure that your financial institutions do not charge fees. Click on the confirmation link and you are done.
Earn Profits From Checking Accounts
A savings account is not the only method to boost your balance. There are lots of checking accounts, internet banks and credit unions that provide rewards. You can earn rewards — such as money back on purchases, excellent rates of interest and new client sign-up bonuses — which you may use to score additional money.
Others may need you to make a particular number of debit card transactions — typically approximately 15 — to receive a bonus. This may be OK when the purchases are a part of your routine spending budget, but avoid making purchases just to get a bonus.
The key is to let your money work hard so that you don’t have to. All you have to do is put some things in place and watch your money grow!