High Yield Savings Accounts
If you want to earn income on the money you have saved yet you are not ready to invest your money actively, you can look into fixed-return investment instruments to use. One of the most popular fixed-return investment instruments is high yield savings account, designed to provide higher annual interest rate with additional terms to comply with.
Online savings accounts are generally considered high yield savings accounts, mainly because they offer higher annual interest rate compared to savings accounts offered by brick and mortar banks. This is because online banks deal with lower overhead costs, so they can offer you higher interest rate without hassle. You can expect to earn anything from 5% to 14% annually when you use online savings accounts.
Certificates of deposit are also considered interesting by most people wanting to earn return on their money. Certificates of deposit are superbly effective especially if you don’t plan to use the money over an extended period of time. The annual interest rate offered is also higher compared to standard savings accounts, allowing you to earn healthy returns easily.
Some financial experts consider whole life insurance as another form of high yield savings account. Since whole life insurance comes with cash value attached to the policy – and the cash value is pretty much liquid – you can use this type of life insurance policy as an investment tool and earn high yield on the insurance premium you are paying. You will also be protecting your family’s financial future in the process.