Looking for the best ways to earn interest on your money in 2024? Understanding your options for maximizing returns is essential in today’s financial landscape. From high-yield savings accounts to diversified investments like certificates of deposit (CDs) and corporate bonds, this article will explore numerous ways available to grow your savings effectively.
Looking for High-yield savings accounts offers competitive interest rates, making them a straightforward choice for those seeking liquidity and modest returns. Certificates of deposit provide fixed rates over a specified term, ideal for individuals looking to lock in higher rates for a set period. Corporate bonds offer higher yields than government securities but come with varying levels of risk, appealing to investors willing to take on more financial risk for potentially higher returns.
Whether you’re interested in dividend-paying stocks, real estate investment trusts (REITs), or exploring peer-to-peer lending platforms, each option has unique advantages and considerations. This guide explores the best ways to earn interest on your money, providing insights into how each method works and the potential returns it can offer.
High-Yield Savings Accounts
High-yield savings accounts reward you with a higher interest rate than traditional savings accounts, making your money grow faster as it sits in your account. The interest rate that these accounts offer is known as the annual percentage yield or APY. The higher your APY, the faster your money grows.
They are ideal for individuals looking to earn higher interest while maintaining liquidity:
- Best Ways to Earn Interest on Your Money: High-yield accounts typically offer APYs that are significantly higher than standard savings accounts.
- How to Find the Best High-Yield Savings Account: Compare rates, fees, and minimum balances to maximize your returns.
Examples:
| Bank | APY | Minimum Balance | Fees |
| Ally Bank | 0.50% | None | No fees |
| Marcus by Goldman Sachs | 0.60% | None | No fees |
| CIT Bank | 0.55% | $100 minimum | No fees |
| Discover Bank | 0.50% | None | No fees |
| Synchrony Bank | 0.50% | None | No fees |
You can also go through the ways to Where Can I Borrow $100 Instantly Online? How to Get a Guaranteed $100 Loan No Credit Check?
Best Ways to Earn Interest on Your Money Through (CDs)
Certificates of Deposit (CDs) provide fixed interest rates for a specified term, offering security and higher yields compared to standard savings accounts.
CDs typically differ from savings accounts because the CD has a specific, fixed term before money can be withdrawn without penalty and generally higher interest rates. It is one of the best ways to earn interest on your money.
- Investments to Make Money: CDs lock in your money for a fixed period at a higher interest rate than savings accounts, making them suitable for savings goals with a specific time frame.
- Earn Money by Investment through Different Types of CDs: Choose from short-term (e.g., 6 months) to long-term (e.g., 5 years) CDs based on your financial goals and risk tolerance.
Examples:
| Bank | Term | APY | Minimum Deposit |
| Wells Fargo | 1-year | 0.75% | $1,000 |
| Discover Bank | 5-year | 1.00% | $2,500 |
| Capital One | 18-month | 0.80% | $0 |
| Barclays | 3-year | 0.90% | $0 |
| Ally Bank | 2-year | 0.85% | $0 |
Money Market Accounts
Money market accounts combine the benefits of savings and checking accounts, offering higher interest rates and check-writing privileges. This makes it the best ways to earn interest on your money.
It is an interest-bearing account at a bank or credit union, not to be confused with a money market mutual fund.
- Best Way to Earn Interest: Money market accounts typically offer higher interest rates than regular savings accounts, making them suitable for short-term savings with easy access.
- How to Invest Money and Earn: They maintain liquidity while earning interest, making them a flexible option for emergency funds or larger purchases.
Examples:
| Bank | APY | Minimum Balance | Check-Writing |
| Capital One | 0.50% | $10,000 | Yes |
| Synchrony Bank | 0.45% | $0 | Yes |
| CIT Bank | 0.50% | $100 | Yes |
| BBVA | 0.35% | $25,000 | Yes |
| TIAA Bank | 0.40% | $500 | Yes |
Like banks, there are cash advance apps that provide funds directly to your PayPal or Cash App account.
There are also 5 best cash advance apps which work with Chime.
Treasury Bonds and Bills
Government-issued securities with varying maturity dates, offering low-risk investments with fixed interest rates.
Treasury bonds last for 20 or 30 years and pay interest every six months. Treasury bills, on the other hand, have shorter durations, ranging from a few days to one year. They are sold for less than their face value and do not pay interest until they mature.
- How to Invest Money to Make Money: Treasury bonds are considered safe investments that pay interest over time, providing a predictable income stream.
- Best Ways to Earn Interest on Your Money: Treasury bills have short terms (e.g., 3 months) while bonds can last up to 30 years, allowing investors to tailor their investments to their financial goals and time horizon.
Examples:
| Type | Term | Interest Rate |
| 10-year Bond | 10 years | 1.50% |
| 5-year Bond | 5 years | 1.00% |
| 1-year Bill | 1 year | 0.50% |
| 3-month Bill | 3 months | 0.25% |
| 30-year Bond | 30 years | 2.00% |
Corporate Bonds
Issued by corporations to raise capital, offering higher yields than government bonds but with varying levels of risk Corporate Bonds are one of the best ways to earn interest on your money.
An organization can issue a corporate bond to raise funds for a variety of reasons, such as ongoing operations, mergers and acquisitions, or to expand a business.
- Risks and Rewards of Corporate Bonds: Corporate bonds can provide higher returns than government securities but carry credit risk depending on the issuer’s financial health.
- Earn Money From Investment: Investors earn interest payments at fixed intervals until maturity, making them suitable for income-oriented investors with a higher risk tolerance.
Examples:
| Company | Bond Type | Interest Rate | Credit Rating |
| Apple | 10-year | 2.00% | AAA |
| Microsoft | 5-year | 1.75% | AA |
| Ford Motor Company | 7-year | 3.00% | BBB |
| AT&T | 15-year | 3.50% | BBB+ |
| Amazon | 20-year | 4.00% | AA- |
Dividend-Paying Stocks
A stock dividend is a payment to shareholders made in additional shares of the company rather than in cash. These dividends are regular profit-sharing payments made between a company and its investors. Companies that pay out a portion of their profits to shareholders in this manner are known as dividend stocks.
- How to Identify Good Dividend Stocks: Look for companies with stable earnings and a history of regular dividend payments, indicating financial strength and commitment to shareholders.
- Best Ways to Earn Interest On Your Money: Dividend payments can provide a reliable income stream and potential for capital appreciation, suitable for long-term investors seeking income and growth.
Examples:
| Company | Dividend Yield | Payout Ratio | Dividend History |
| Coca-Cola | 3.00% | 80% | 58 years of consecutive dividends |
| Johnson & Johnson | 2.50% | 55% | 59 years of consecutive dividends |
| Procter & Gamble | 2.75% | 60% | 65 years of consecutive dividends |
| Pfizer | 3.25% | 70% | 40 years of consecutive dividends |
| Verizon | 4.00% | 50% | 36 years of consecutive dividends |
Real Estate Investment Trusts (REITs)
A real estate investment trust (REIT) is a company that owns and, in most cases, operates income-producing real estate. REITs own many types of commercial properties, including office buildings, apartment complexes, studios, warehouses, hospitals, shopping centers, hotels, and commercial forests.
These investment vehicles manage income-generating real estate, offering high dividend yields and the potential for capital appreciation
- Types Of (REITs) For Money Earning Investment: Publicly traded REITs and private REITs offer different investment opportunities, from residential to commercial properties.
- Best Ways to Earn Interest on Your Money: REITs distribute rental income to investors, providing regular dividends and exposure to real estate markets.
Examples:
| REIT | Dividend Yield | Property Type | Market Cap (Billion $) |
| Realty Income (O) | 4.00% | Retail | $25.7 |
| American Tower (AMT) | 2.50% | Telecom | $127.4 |
| Digital Realty (DLR) | 3.25% | Data Centers | $52.3 |
| Simon Property (SPG) | 5.00% | Malls | $33.8 |
| Public Storage (PSA) | 3.75% | Self Storage | $41.6 |
Peer-to-Peer (P2P) Lending
Peer-to-peer (P2P) lending connects lenders directly to borrowers through online platforms, offering an alternative to traditional bank loans. Investors can earn higher interest rates compared to traditional savings accounts by lending money directly to borrowers. P2P platforms provide tools to assess borrower creditworthiness, helping investors manage risk by diversifying their investments. Regular repayments with interest provide a steady income stream for investors.
- How P2P Works to Invest Money and Earn: Investors earn interest from borrower repayments, diversifying their investment portfolio beyond stocks and bonds.
- Best Ways to Earn Interest On Your Money (Risks and Benefits): P2P lending involves credit risk, but platforms often provide tools to assess borrower creditworthiness and manage risk.
Examples:
| Platform | Average Return | Minimum Investment | Loan Terms | Risk Rating |
| LendingClub | 5% – 7% | $25 | 3 – 5 years | A to E |
| Prosper | 5% – 9% | $25 | 3 – 5 years | AA to HR |
| Funding Circle | 4% – 8% | $10,000 | 6 months – 5 years | A+ to E |
| Upstart | 6% – 10% | $100 | 3 – 5 years | AA to D |
| Peerform | 5% – 8% | $1,000 | 3 – 5 years | A to HR |
Rewards Checking Accounts
A rewards checking product is a checking account that provides consumer incentives or perks when certain monthly requirements are met. These perks may include high annual percentage rates, ATM refunds, cashback, iTunes credits, airline miles, cell phone insurance, and shopping discounts.
These accounts offer interest based on certain criteria, combining the benefits of checking and savings accounts.
- How to Gain Interest in Bank Accounts: Meet requirements such as minimum deposits, transactions, or using a debit card.
- Best Ways to Earn Interest On Your Money: Earn interest on your checking balance while enjoying other perks such as cashback or ATM fee reimbursements.
Examples:
| Bank | APY | Minimum Balance | Additional Features |
| Discover Cashback | 1.00% | None | Cashback on debit purchases |
| Axos Bank Rewards | 1.25% | $1,500 | Unlimited ATM fee reimbursements |
| SoFi Money | 0.25% | None | Free ATM withdrawals worldwide |
| Aspiration Spend | 1.00% | None | Plant trees with every transaction |
| Radius Bank Rewards | 1.00% | $2,500 | 1% cashback on purchases |
Savings Bonds
Government-issued securities, such as savings bonds, offer a safe way for individual investors to save and earn interest. Savings bonds are a secure and straightforward method for individuals to loan money directly to the government and receive a return on their investment.
These bonds provide guaranteed interest payments from the government, making them a conservative way to save money. As a form of fixed-term investment, savings bonds require that your money is locked away for an agreed amount of time, unlike flexible-access savings.
- How to Earn Interest on Your Money Through Saving Bonds: Series EE and I bonds are designed for long-term savings, offering fixed interest rates and protection against inflation.
- Best Ways to Earn Interest on Your Money: Bonds can be purchased directly from the U.S. Treasury with competitive rates and tax advantages.
Examples:
| Bond Type | Interest Rate | Tax Considerations | Investment Limit |
| Series EE | Fixed rate | Tax-deferred until maturity | $10,000 per year |
| Series I | Inflation-indexed | Tax-deferred until maturity | $10,000 per year |
| TreasuryDirect | Fixed rate | Tax-exempt for state and local | $10,000 per year |
| Treasury Bills | Fixed rate | Tax-deferred until maturity | $10,000 per year |
| Municipal Bonds | Fixed rate | Tax-exempt interest | $10,000 per year |
Municipal Bonds
Municipal bonds, often called “munis,” are debt securities issued by states, cities, counties, and other governmental entities. These bonds are used to fund various community needs, such as building schools, hospitals, or infrastructure like roads and bridges.
When you buy a municipal bond, you are essentially loaning money to the issuer in exchange for regular interest payments and the return of the bond’s face value at maturity.
Municipal bonds are attractive to investors because they typically offer tax-exempt interest income, making them advantageous for those seeking tax-efficient investment opportunities.
- How to Earn Interest On Your Money: Municipal bonds provide a steady income stream with lower credit risk compared to corporate bonds.
- Earn Money from Investment: Suitable for investors seeking tax-efficient income and supporting community development.
Examples:
| Municipality | Bond Type | Interest Rate | Tax Considerations |
| New York City | General Obligation | 3.00% | Tax-exempt |
| California State | Revenue | 3.50% | Tax-exempt |
| Texas State | General Obligation | 2.75% | Tax-exempt |
| Florida State | Revenue | 3.25% | Tax-exempt |
| Illinois State | General Obligation | 3.75% | Tax-exempt |
Conclusion
Understanding the best ways to earn interest on your money in 2024 opens up diverse opportunities for investors. Whether through high-yield savings accounts, certificates of deposit (CDs), or investments in dividend-paying stocks and real estate investment trusts (REITs), each avenue offers its own blend of potential returns and risks.
Municipal and corporate bonds provide stable options, while peer-to-peer lending platforms and rewards checking accounts offer innovative alternatives. For those aiming to maximize returns, understanding the nuances of each investment strategy is crucial.
FAQ
Where can I get 10% interest?
High-yield savings accounts or certain P2P lending platforms may offer competitive rates.
Where can I get 12% interest?
Some corporate bonds or riskier investments like certain stocks might offer higher returns, though they come with higher risk.
What is the best way to earn interest on a large amount of money?
Diversifying across multiple stable investments like CDs, bonds, and REITs can balance risk and return.
How do I get the maximum interest on my money?
Researching and selecting investments with higher yields and understanding their associated risks is key.
Where can I make the most interest on my money?
This varies based on market conditions, but exploring options like high-yield accounts and diversified portfolios can help.
How to earn interest on money monthly?
Consider investments like dividend stocks or bonds that offer regular income distributions.
Where can I get 20% interest on my money online?
Achieving such high returns typically involves higher-risk investments or speculative ventures, which may not be suitable for all investors.
How to earn 10% interest per month?
Monthly returns of this magnitude are uncommon and often associated with high-risk investments, which should be approached cautiously.
Where can I get 12% interest on my money?
Certain corporate bonds or specialized investment products may offer higher returns, typically with higher risk.