There's an old saying that "it takes money to make money." When it comes to making money from interest, that saying is true. Interest can help a savings account keep up with the rate of inflation in the long term, or, in the cases of large amounts of principal, even make money in the short term as well. Making money off interest doesn't have to be a difficult process; in fact, most find it to be a simple task.
Shop around for different banks. Each bank will offer a different interest rate on it's accounts, so find the one that best suits your needs.
Place as much money as you can into the account. The larger the principal, the higher the total amount of interest.
Leave the money in the account for as long as possible. Removing money from the account will take away from the amount that can earn interest.
Consider a money market account. These accounts give you less freedom on when you can spend, but offer higher interest rates.
Consider a savings account. Often savings accounts will offer higher interest rates than checking accounts.
Consider a certificate of deposit. These often have even more restrictions than a money market account, but can offer high interest rates.
Speak to a financial adviser. Many banks have staff who are there to help you get the most out of your money.
Often, bank accounts don't offer high enough interest rates to fight inflation. Consider a wide variety of low-risk investment options, rather than a single type of bank account.
- Often, bank accounts don't offer high enough interest rates to fight inflation. Consider a wide variety of low-risk investment options, rather than a single type of bank account.
Henrietta Padgett began writing for various websites in 2010. Padgett holds a Bachelor of Arts in English and interned for a small publisher who specialized in health and cooking articles. She enjoys writing about her favorite interests, including hair care, books, languages (especially Latin) and animals.