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It wasn’t that long ago that earning meaningful interest on a checking or savings account was nearly impossible. For years, banks offered savings and checking accounts with rates so low they were hardly worth considering. But times have changed. Today’s high-rate environment has opened up new opportunities for savers to earn real money just by parking their cash in the right places. So, if you’re still earning next to nothing on your savings or checking account balances, it’s time to explore better options.
For example, there are currently a number of simple ways to earn returns of 3% or more on the money in your savings and checking accounts. However, these opportunities don’t always land in your lap. Finding them typically requires a bit of research, strategic planning and, in some cases, minor adjustments to how you manage your money. But even a little effort can pay off significantly, allowing you to earn hundreds or even thousands of dollars in extra interest each year.
So how can you take advantage of the opportunities to earn 3% or more on the money in your checking and savings accounts right now? Below, we’ll show you how to get started.
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How to earn 3% or more on your checking and savings accounts now
If your goal is to earn the highest rate possible on your checking and savings accounts, here are a few steps you may want to take:
Shop around for the best offers
One of the easiest ways to start earning more on your deposits is to look beyond your current bank. Many traditional banks still offer checking and savings accounts with interest rates close to 0%, which means your money isn’t growing much at all. So, you may want to consider switching to an online bank or a credit union instead, as these institutions do not have the same overhead costs as brick-and-mortar banks, and, in turn, can provide much higher yields.
For example, right now, some online banks are offering high-yield savings accounts with annual percentage yields (APYs) of 3% or more — well above the average savings account rate of 0.41%. If you’re going to take this route, though, just be sure to read the fine print. Some accounts may have balance requirements or other conditions to qualify for the highest rates.
Open a top savings account and start maximizing your returns today.
Explore reward checking accounts with rate conditions
Some of today’s best high-yielding checking accounts offer 4% rates (or higher) if you meet certain monthly requirements, and if you can meet these conditions, these types of accounts can be an easy way to maximize your interest returns. For example, you may need to make a certain number of debit card purchases, set up direct deposit and opt for paperless statements to earn these types of returns.
The extra effort required to meet the conditions is often well worth the significantly higher returns, especially if you’re able to meet the requirements without changing your habits significantly. Note, though, that some of these accounts will limit the high rate to balances under a certain amount, offering lower rates on amounts above that threshold. So, be sure to read the fine print before opening any accounts.
Take advantage of bank bonuses and special offers
Many banks offer cash bonuses to new customers who open a savings or checking account (or a combination of the two) and meet certain requirements. These bonuses can range from $100 to $500 or more, effectively boosting your overall return. While these are one-time offers, they can be an easy way to earn extra money in addition to the interest you’ll be earning on your deposits.
For example, earning a $300 bonus on a $10,000 deposit effectively adds 3% to your annual return. While that may not be a 3% return in the traditional sense, it’s still the equivalent of earning an annual return on that balance at that rate.
To qualify for these promotions, you may need to set up direct deposit, maintain a minimum balance or complete a specific number of transactions within a set period. If you’re already planning to switch banks, though, taking advantage of a sign-up bonus is a great way to sweeten the deal.
Shift to a cash management account
Another excellent option for earning a high return on your money is a cash management account. These accounts, often offered by brokerage firms and financial technology companies, function as a hybrid between checking and savings accounts, offering high interest rates — many cash management account rates surpass 3% currently — while providing convenient access to your funds. And, if you’re also investing in stocks, bonds or exchange-traded funds, having your money in a cash management account allows for easy transfers between your savings and investment accounts.
The bottom line
Before you settle for a low-yield savings or checking account, consider the other opportunities available in today’s high-rate environment to maximize your earnings. With a little research and strategic planning, you can take advantage of high-yield accounts, reward checking options, bank bonuses and cash management accounts to significantly boost your returns. By exploring these options and taking action now, you can ensure that your hard-earned money is working as efficiently as possible for you.
