How To Get Interest On Money: The Ultimate Guide

Earning interest on your money is a smart financial move that can help you grow your wealth safely and steadily, and at money-central.com, we are here to guide you through it. This comprehensive guide explores various low-risk strategies to maximize your returns, from high-yield savings accounts to government bonds. By understanding these options, you can make informed decisions to optimize your financial growth, enhance your cash flow, and achieve financial stability.

1. Understanding Interest-Bearing Accounts

Want to know how to get interest on your money? It starts with understanding the different types of accounts that offer interest. These accounts are designed to help your money grow over time, providing a return on your deposited funds.

• Savings Accounts: These are basic accounts offered by banks and credit unions, ideal for short-term savings goals and emergency funds. They offer modest interest rates, ensuring easy access to your money.
• High-Yield Savings Accounts: Offered primarily by online banks, these accounts provide significantly higher interest rates compared to traditional savings accounts. The absence of physical branches allows these banks to pass on cost savings through better rates.
• Money Market Accounts (MMAs): These accounts combine features of both savings and checking accounts. They typically offer higher interest rates than regular savings accounts and may include check-writing privileges and debit cards.
• Certificates of Deposit (CDs): CDs require you to deposit a fixed amount of money for a specific term. In return, you receive a fixed interest rate, which is usually higher than savings accounts. Early withdrawals typically incur penalties.
• Rewards Checking Accounts: These checking accounts offer rewards such as cash back or higher interest rates on your balance. To qualify, you often need to meet certain requirements, such as making a minimum number of debit card transactions or maintaining a specific balance.

Understanding these accounts is the first step in making your money work for you. Now, let’s dive deeper into each of these options.

2. High-Yield Savings Accounts: A Safe Haven for Your Funds

High-yield savings accounts are one of the safest ways to earn interest on your money. These accounts, often offered by online banks, provide significantly higher interest rates than traditional savings accounts, making them an attractive option for those looking to grow their savings without taking on too much risk.

• Benefits of High-Yield Savings Accounts:

  • Higher Interest Rates: High-yield savings accounts offer interest rates that are several times higher than traditional savings accounts. As of May 2025, the best high-yield savings accounts offer an Annual Percentage Yield (APY) of up to 4.50%, significantly outperforming the national average rate of 0.59%.
  • FDIC Insurance: Deposits in high-yield savings accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per insured bank. This ensures that your money is safe, even if the bank fails.
  • Liquidity: High-yield savings accounts allow you to access your money easily when needed. While some accounts may have restrictions on the number of withdrawals you can make per month, they generally offer more flexibility than other interest-bearing options like certificates of deposit (CDs).

• Where to Find High-Yield Savings Accounts:

  • Online Banks: Online banks often offer the best high-yield savings accounts due to their lower overhead costs compared to traditional brick-and-mortar banks.
  • Credit Unions: Some credit unions also offer high-yield savings accounts to their members. Check with local credit unions to see what rates they offer.

• Key Considerations:

  • Minimum Balance Requirements: Some high-yield savings accounts may require you to maintain a minimum balance to earn the advertised APY.
  • Monthly Fees: While many high-yield savings accounts do not charge monthly fees, it’s essential to check the terms and conditions to ensure there are no hidden costs.
  • Rate Adjustments: Keep in mind that interest rates on high-yield savings accounts can fluctuate based on market conditions and Federal Reserve policies.

  Example: If you deposit $10,000 into a high-yield savings account with a 4.50% APY, you would earn $450 in interest after one year. In contrast, a traditional savings account with a 0.59% APY would only earn $59 in interest on the same deposit.

To find the best high-yield savings account for your needs, visit money-central.com, where you can compare rates, terms, and conditions from various banks and credit unions. Our comprehensive resources and tools will help you make an informed decision and maximize your savings potential.

3. Rewards Checking Accounts: Earning While You Spend

Rewards checking accounts offer a unique way to earn interest on your money while also benefiting from the convenience of a checking account. These accounts provide rewards such as cash back or higher interest rates on your balance when you meet certain requirements.

• How Rewards Checking Accounts Work:

  • Cash Back Rewards: Some rewards checking accounts offer cash back on purchases made with your debit card. This can be a great way to earn money back on everyday spending.
  • High-Interest Rates: Other rewards checking accounts pay higher interest rates on your balance, but these rates often come with specific requirements.

• Requirements to Earn Rewards:

  • Minimum Debit Card Transactions: Many rewards checking accounts require you to make a minimum number of debit card transactions each month to qualify for the rewards.
  • Direct Deposits: Some accounts require you to set up regular direct deposits to receive the bonus interest rate or cash back.
  • Minimum Balance: Maintaining a minimum balance in the account may also be a requirement to earn rewards.

  Example: Consumers Credit Union (CCU) offers interest rates as high as 5% APY on balances up to $10,000 for its Rewards Checking account. To earn this rate, you must meet the following requirements:

  • Sign up for electronic statements.
  • Make at least 12 debit or credit card purchases per month.
  • Receive $500 or more in direct deposits, mobile check deposits, or ACH credits to the account monthly.
  • Spend more than $1,000 on a CCU credit card monthly.

• Pros and Cons:

  • Pros:
    • Earn rewards on everyday spending.
    • Potential for high-interest rates.
  • Cons:
    • Requirements can be challenging to meet.
    • Interest rates may be limited to specific balance tiers.

It’s important to evaluate whether you can realistically meet the requirements to earn the rewards. If the requirements are too difficult, you might earn less interest than you would with a standard savings account.

To explore the best rewards checking accounts and find one that fits your spending habits and financial goals, visit money-central.com. Our resources provide detailed comparisons of various accounts, helping you make an informed decision.

4. Certificates of Deposit (CDs): Locking in Higher Rates

Certificates of Deposit (CDs) are a popular option for those looking to earn higher interest rates on their savings while agreeing to keep their money deposited for a fixed term. CDs offer a fixed interest rate for a specified period, providing stability and predictability in your earnings.

• How CDs Work:

  • Fixed Term: When you purchase a CD, you agree to keep your money deposited for a specific term, which can range from a few months to several years.
  • Fixed Interest Rate: In return for keeping your money deposited for the term, you receive a fixed interest rate, which is typically higher than savings accounts.
  • Early Withdrawal Penalties: If you withdraw your money before the CD term expires, you will likely incur an early withdrawal penalty, which can reduce your overall earnings.

• Types of CDs:

  • Short-Term CDs (3-6 months): Offer flexibility with shorter terms, ideal for those who may need access to their money sooner.
  • Mid-Term CDs (1-2 years): Provide a balance between earning higher rates and maintaining some liquidity.
  • Long-Term CDs (3-5 years): Offer the highest interest rates but require a longer commitment.

  Example: As of May 2025, the top CD rates range from 4.40% to 4.60% APY, depending on the term length. This makes CDs an attractive option for those seeking a secure and higher-yielding investment.

• Benefits of CDs:

  • Higher Interest Rates: CDs typically offer higher interest rates than traditional savings accounts, allowing you to earn more on your savings.
  • Fixed Rate: The interest rate is locked in when you open the CD, providing stability and predictability in your earnings, even if market rates fluctuate.
  • FDIC Insurance: CDs are insured by the FDIC up to $250,000 per depositor, per insured bank, providing security for your investment.

• CD Ladder Strategy:
  A CD ladder involves opening multiple CDs with different maturity dates. This strategy allows you to earn higher rates while also having access to portions of your money at frequent intervals.

  Example: You could open a 1-year CD, a 2-year CD, a 3-year CD, a 4-year CD, and a 5-year CD. As each CD matures, you can reinvest the money into a new 5-year CD, ensuring you always have access to some of your funds while maximizing your interest earnings.

To learn more about CDs and find the best rates for your needs, visit money-central.com. Our CD ladder calculator and comparison tools can help you build a CD strategy that aligns with your financial goals and risk tolerance.

5. Bank Bonuses: Quick Cash for New Accounts

Bank bonuses are a simple way to earn interest on your money, and they offer a quick boost to your savings by providing cash incentives for opening a new account and meeting certain requirements. These bonuses can be a lucrative way to increase your earnings, especially for those with some savings already set aside.

• How Bank Bonuses Work:

  • Minimum Deposit: Banks typically require you to deposit a minimum amount into the new account to qualify for the bonus.
  • Minimum Balance: You may need to maintain a minimum balance in the account for a specific period to receive the bonus.
  • Direct Deposits: Some banks require you to set up regular direct deposits to qualify for the bonus.

• Examples of Bank Bonuses:

  • $300 Bonus: Deposit $10,000 and maintain that balance for at least three months. This is equivalent to earning a 3% APY on a savings account for a year.
  • Larger Bonuses: Some banks offer bonuses of $400 or $500, but these typically require higher minimum deposits.

• Key Considerations:

  • Fine Print: Always read the fine print to understand the terms and conditions of the bonus offer.
  • Fees: Some banks may charge fees if you don’t meet certain requirements or try to close the account too quickly after opening it.
  • Forfeit: You may forfeit the reward if you close the account soon after receiving the bonus.

Earning such a bonus would be equivalent to earning a 3 percent APY in a savings account for a year (assuming the APY didn’t fluctuate and you didn’t add money to the account or withdraw from it).

To find the best bank account bonuses currently available, visit money-central.com. Our regularly updated list provides detailed information on bonus offers, minimum requirements, and any associated fees, helping you make an informed decision and maximize your earnings.

6. Money Market Accounts (MMAs): Blending Savings and Checking Features

Money Market Accounts (MMAs) are another great way to earn interest on your money and offer a hybrid approach, blending features of savings and checking accounts. They pay interest, sometimes at higher rates than high-yield savings accounts, while commonly offering check-writing privileges and debit cards that you can use to make withdrawals.

• Key Features of Money Market Accounts:

  • Higher Interest Rates: MMAs typically offer higher interest rates than traditional savings accounts, although rates can vary.
  • Check-Writing Privileges: Many MMAs come with check-writing privileges, allowing you to write checks from your account.
  • Debit Cards: Some MMAs offer debit cards that you can use to make purchases or withdraw cash from ATMs.

• Pros and Cons:

  • Pros:
    • Higher interest rates compared to traditional savings accounts.
    • Flexibility to write checks and make debit card purchases.
  • Cons:
    • May have higher fees and minimum balance requirements.
    • No guarantee that the MMA pays a better rate than the bank’s savings account.

  Example: As of May 2025, the top money market account rates reach up to 4.40% APY, while the national average is just 0.47%. This makes MMAs an attractive option for those seeking a balance between earning interest and having access to their funds.

• Where to Find Money Market Accounts:

  • Online Banks: Online banks often offer the best MMA rates due to their lower overhead costs.
  • Traditional Banks: Traditional banks also offer MMAs, but their rates may not be as competitive as those offered by online banks.

• Key Considerations:

  • Fees: Be aware of any monthly fees or transaction fees associated with the account.
  • Minimum Balance Requirements: Some MMAs may require you to maintain a minimum balance to earn the advertised APY.
  • Withdrawal Limits: MMAs may have limits on the number of withdrawals you can make per month.

To explore the best money market accounts and compare rates and features, visit money-central.com. Our comprehensive guide provides valuable insights and tools to help you find an MMA that meets your financial needs.

7. Credit Unions: Community-Focused Banking with Potential Perks

Credit unions are not-for-profit financial institutions owned by their members, and they offer a unique banking experience with potential perks such as lower fees, better account perks, and higher interest rates. Unlike banks, credit unions work for the benefit of account holders instead of shareholders.

• Benefits of Credit Unions:

  • Lower Fees: Credit unions often charge lower fees than traditional banks, making them a more affordable option for many people.
  • Better Account Perks: Credit unions may offer better account perks, such as free checking accounts and higher interest rates on savings accounts.
  • Higher Interest Rates: In some cases, credit unions may offer higher interest rates on savings accounts and CDs compared to traditional banks.

• How to Join a Credit Union:

  • Eligibility Requirements: Some credit unions are open to anyone, while others are only open to people who live in a certain region or work in a given industry.
  • Membership: To join a credit union, you typically need to open an account and become a member.

• Key Considerations:

  • Location: If you prefer to do your banking in person, consider a credit union that has branches near you.
  • Online Banking: If you prefer to bank online, choose a credit union that offers robust online banking services.

If you have a credit union near you, check the rates it offers, as you might be able to get a good deal.

To find a credit union that meets your needs and explore the benefits of community-focused banking, visit money-central.com. Our resources provide a list of the best credit unions and valuable information on membership requirements and account perks.

8. Government Bonds: A Low-Risk Investment Option

Government bonds are a low-risk investment option that can help you earn interest on your money while supporting government initiatives. When you buy a bond, you are essentially lending money to the government, which promises to repay you with interest over a specified period.

• Types of Government Bonds:

  • U.S. Savings Bonds: These are low-risk bonds issued by the U.S. Department of the Treasury, designed for individual investors.
  • Treasury Bonds: These are marketable securities issued by the U.S. government with maturities ranging from 1 to 30 years.
  • Series I Savings Bonds (I Bonds): These are government bonds designed to protect your investment from inflation.

  Example: The composite rate for I bonds issued from November 2024 through April 2025 is 3.11%, which includes a fixed rate of 1.20% plus an inflation-adjusted rate of 1.90%.

• Benefits of Government Bonds:

  • Low Risk: Government bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
  • Inflation Protection: I Bonds are designed to protect your investment from inflation, making them a good option for long-term savings.
  • Tax Advantages: The interest earned on U.S. Savings Bonds and Treasury Bonds is exempt from state and local taxes.

• Key Considerations:

  • Interest Rates: The interest rates on government bonds can fluctuate based on market conditions.
  • Maturity Dates: Bonds have maturity dates, which are the dates when the principal is repaid.
  • Liquidity: While you can sell bonds before they mature, you may have to sell them for less than you paid if market rates increase.

To learn more about government bonds and explore your investment options, visit money-central.com. Our resources provide detailed information on different types of bonds, their interest rates, and how to purchase them.

9. Navigating Risk and Return

Understanding the balance between risk and return is essential when deciding how to get interest on your money. Different investment options come with varying levels of risk, and it’s crucial to align your choices with your risk tolerance and financial goals.

• Risk Tolerance:

  • Conservative: If you have a low-risk tolerance, you may prefer options such as high-yield savings accounts, money market accounts, and government bonds, which offer lower returns but are generally safer.
  • Moderate: If you have a moderate risk tolerance, you may consider CDs and credit unions, which offer higher returns with a bit more risk.
  • Aggressive: If you have a high-risk tolerance, you may explore options such as stocks and real estate, which offer the potential for high returns but also carry a higher risk of loss.

• Financial Goals:

  • Short-Term Goals: If you are saving for a short-term goal, such as a vacation or emergency fund, you may prefer liquid options such as high-yield savings accounts and money market accounts.
  • Long-Term Goals: If you are saving for a long-term goal, such as retirement or a down payment on a house, you may consider options such as CDs and government bonds.

According to research from New York University’s Stern School of Business, in July 2025, understanding your risk tolerance and aligning your investment choices with your financial goals are crucial for making informed decisions and maximizing your returns.

To assess your risk tolerance and align your investment choices with your financial goals, visit money-central.com. Our resources offer risk assessment tools and personalized advice to help you make informed decisions and achieve financial success.

10. Making the Right Choice for You

Choosing the right option to earn interest on your money depends on your individual needs, risk tolerance, and financial goals. Consider the following questions to help you make the best decision:

• Will I Possibly Need Quick Access to the Money?

  • If you need quick access to your money, stick with a high-yield savings account where you can withdraw the money anytime without a penalty.
  • If you’re saving for a planned purchase in several years, a CD that pays a competitive yield can be a good investment.

• How Much Debt Do I Have?

  • If you already have an adequate emergency fund, consider focusing on paying down any high-interest debt before devoting additional funds to other investments.

• Am I Able to Make the Required Commitment?

  • Bank bonuses can be very lucrative, but they often require you to take multiple steps to earn the bonus. Make sure you are willing and able to meet the requirements.
    Address: 44 West Fourth Street, New York, NY 10012, United States.
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    Website: money-central.com.
    For instance, bank bonuses can be very lucrative, but they often require you to take multiple steps to earn the bonus.

At money-central.com, we are committed to providing you with the resources and tools you need to make informed financial decisions. Explore our articles, calculators, and expert advice to take control of your finances and achieve your goals.

Frequently Asked Questions (FAQ)

1. What is a high-yield savings account?

A high-yield savings account is a type of savings account that offers a significantly higher interest rate compared to traditional savings accounts. These accounts are often offered by online banks and can help you grow your savings faster.

2. How does a money market account (MMA) differ from a savings account?

Money market accounts (MMAs) offer a hybrid approach, blending features of savings and checking accounts. They typically offer higher interest rates than traditional savings accounts and may include check-writing privileges and debit cards.

3. What are certificates of deposit (CDs) and how do they work?

Certificates of deposit (CDs) require you to deposit a fixed amount of money for a specific term. In return, you receive a fixed interest rate, which is usually higher than savings accounts. Early withdrawals typically incur penalties.

4. What is a bank bonus and how can I earn one?

Bank bonuses are cash incentives offered by banks for opening a new account and meeting certain requirements, such as making a minimum deposit and maintaining a minimum balance for a specific period.

5. What are government bonds and why are they considered low-risk?

Government bonds are a low-risk investment option where you lend money to the government, which promises to repay you with interest over a specified period. They are considered low-risk because they are backed by the full faith and credit of the U.S. government.

6. What is a credit union and what are its benefits?

Credit unions are not-for-profit financial institutions owned by their members. They often offer lower fees, better account perks, and higher interest rates compared to traditional banks.

7. How can I determine my risk tolerance when choosing investment options?

Assess your comfort level with potential losses. If you prefer safer options with lower returns, you have a low-risk tolerance. If you are willing to take on more risk for potentially higher returns, you have a higher risk tolerance.

8. What is a CD ladder and how does it work?

A CD ladder involves opening multiple CDs with different maturity dates. This strategy allows you to earn higher rates while also having access to portions of your money at frequent intervals.

9. Are the interest rates on high-yield savings accounts fixed or variable?

The interest rates on high-yield savings accounts are typically variable, meaning they can fluctuate based on market conditions and Federal Reserve policies.

10. What should I consider before opening a rewards checking account?

Before opening a rewards checking account, consider whether you can realistically meet the requirements to earn the rewards, such as making a minimum number of debit card transactions or maintaining a specific balance.

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