With interest rates in many parts of the world at historically low levels, many of us have been earning peanuts on our savings for several years now.
Whilst this might seem okay in the short-term, if this money is part of your life savings that you are building for your future or you are saving up for an event that is 10+ years away, then you can’t afford for this to continue for too long.
Unfortunately, with global economics as they are at the moment, Governments overspent and banks still de-leveraging after their recent excesses; interest rates don’t seem likely to be rising any time soon.
So if you want to get better returns from your savings and investments, you will need to start doing something different.
But what can you do?
To get you thinking, here are 5 easy ways to earn more income from your savings right now.
1. Move Your Spare Cash Into A Savings Account
If you have spare cash sat in a credit / check account then you are probably earning zero interest on your spare cash, or almost zero at best.
The good news is, all you have to do to start making your money work harder for you is to move your spare cash into a proper savings account.
2. Move Your Savings Into A Higher Rate Account
If you already have your spare cash sat in a savings account earning you some interest, then have you considered whether you could be better off with your money elsewhere?
Not all savings accounts are the same.
Yes, I know you know this, but it is surprising how few of us move our money to follow the best interest rates, as they change!
It is even more important to keep your eye on this these days because many banks provide introductory “bonus rates” that only last for an initial period – e.g. 12 months.
Even worse, many savings accounts that have existed for many years become non-core for the bank and they have a habit of lowering their rates on such accounts to almost zero, relying on our apathy and reluctance to switch accounts.
If you have not checked the interest rate on your savings account(s) recently then do it now – your bank should publish the details online at their web site.
3. Move Your Savings Into A Notice Account
If you are not likely to require some of your spare cash for some time, e.g. 1 to 5 years, then you can get a better rate of interest from a notice account.
So, by all means leave some of your spare cash in an instant access account for emergencies, but move the rest of your savings into a notice account or a number of them to earn more with your savings.
4. Move Your Savings Into Fixed Interest Deposits
These are similar to notice accounts but are different and often confused because they work in a similar way.
However, with these accounts, you can’t get your money out as easily if you suddenly need it and you will lose any interest accumulated if you don’t leave your money alone for the full agreed term.
That said, if you know you don’t need your money for the agreed period, say 2 to 5 years, you can earn a better return for your money.
5. Start Investing For Income
All of the methods described above are better ways of managing your savings.
However, you can make your money work harder still, if you are prepared to invest it, as opposed to saving it.
Remember, this does not have to be an all or nothing approach.
Indeed, I always recommend that you clear your debts and have sufficient cash stored in cash savings to cover any potential emergencies.
Any cash in excess of that amount though should be invested.
I invest my money into shares that provide income from high dividends.
I also invest my money into shares that don’t produce any income but could potentially multiply in value several times over.
In other words, I split up my investments into different baskets and apply different strategies for each.
And you could do the same.
Are you ready yet?
If you want to earn more income from your savings and start learning how to invest then sign up for the FREE guide below.