There are only two types of people in this world – those who know how to make their money work for them and those who do not. Most Americans do not know that there are a number of options available for them to double their savings within just a matter of decades. These investment options allow savvy investors to build up on their wealth with a guarantee return of their principal amount.
Are you looking for easy ways to earn more interest on your savings account? You should read on as we unveil top ten investment options in the U.S. that allow you to eke out more interest out of your saving account.
1. Indexed Annuities
Indexed annuities are a special class of financial assets that offer high return potential similar to equity stocks with the guaranteed return of the principal amount. The returns on these indexed annuities are linked to the performance of a number of equity stocks. There is usually a cap on the rate of return you can earn on the indexed annuities. But the rate is often higher than that of ordinary annuities. You can expect to earn around 7%-10% return on indexed annuities.
2. Single Corporate Bonds
Another great option for U.S. investors to earn more interest on their savings is to invest in single corporate bonds. You can earn around 1.5% to 11% on these bonds. The company that issues the single corporate bonds pays at a fixed interest rate throughout the bond term. It returns the entire profit on the savings at the end of the term.
You can buy single corporate bonds when it is issued by the company. These bonds are traded similar to equity shares in the stock market. Some of the notable companies that offer single corporate bonds include Lloyd’s bank, Avira, and Enterprise Inns.
3. Certificates of Deposit
CDs or certificate of deposits is also a great financial option to earn more on your savings. The maturity of CDs ranges from three months to five years duration. You can purchase CDs for just around $250. The advantage of purchasing certificate of deposits is that they allow you to earn greater interest as compared to traditional savings accounts.
4. Money Market Deposit Accounts
Money market accounts (MMA) are insured by Federal Deposit Insurance Corporation. The FDIC insures up to $250,000 of the account. Maturity of the MMA accounts range from three
For your emergency fund — at least three to six months’ worth of living expenses — and any other savings that need to be safe and immediately available, look to accounts insured by the Federal Deposit Insurance Corp., such as money market deposit accounts. Each account is insured up to $250,000. Although, the yields on MMA are not that high but they are usually greater than savings account.
5. Emerging Market Bond Funds
The mutual funds issued by BRIC countries that include Brazil, Russia, India, and China offers more than twice the payout of U.S. treasury. These bonds are also secured unlike the junk bonds offered by the PIGS (Portugal, Ireland, Greece, and Spain). You can also invest in a bond fund mix that gives you exposure to emerging market bonds. One such example is PIMCO emerging market fund that offers returns as high as 5.1%.
6. Credit Union Accounts
Another high interest paying account is credit union account. A credit union is a member owned financial cooperative that offers the services of personal checking, savings, and mortgage, and auto loans to the members. Some of the credit unions offer high returns on the saving account.
7. Online Savings Accounts
Finally, you can earn higher interest on your savings by investing in online savings account. The online saving banks offer greater returns as compared to traditional savings account. You can expect to earn about 1% returns on your “online” savings as compared to an average of just 0.15% for a traditional savings account. Just make sure that your savings in the online savings institutions is secured by FDIC (Federal Deposit Insurance Corp.)
Bottom-line, investing in the above-mentioned accounts allow you to earn suboptimal returns on your investment. Mr. Thurrow, co-director of Baird Wealth Private Wealth said that in this low interest rate environment, you could invest in a little more volatile market and earn greater profit or accept a lower return by leaving your savings in traditional account. Investing in the above accounts allow you an easy way to boost returns and earn suboptimal returns on your savings.