3 Best Options for Earning High!
The trick behind earning high interest from your investments is mostly a matter of what risks you are prepared to take,
as well as the amount of time you would be willing to wait on returns.
Someone who has bigger short-term needs obviously needs to be prepared to take bigger risks than someone who has a longer time frame in which they can wait for returns.
You have a couple of options when you are thinking about what to do about funds which you want to keep liquid.
Earning High Interest within a Short Timeframe
There aren’t a lot of solutions for people who want a quick way to earn more with a short-term deposit.
(Note: Online banks have much better rates)
There is not a lot to do when you want to get money working at a higher return rate for you;
this is due to the liquidity issue.
(Meaning you want to have the money readily accessible)
When you have a little bit of a longer investment timeframe there are many more options.
2-3 Month Timeframe
When you get away from that first level type of account, where you have the funds immediately available,
your earning potential becomes a lot higher.
While the local bank probably doesn’t have much to offer,
(things like term deposits) A lot of online banks have great deals with attractive yields.
So it’s just a matter of choosing one of the many offers which are available online.
Then you must be patient enough to wait, without touching your deposits during the investment time.
Many people look to earn a lot of interest on short or just slightly longer deposits.
If you have a longer investment time-frame, you have even riskier options.
Earning High Interest within an Extended Timeframe
If you have an unspecified timeframe in which you can invest your money you will have more alternatives then with deposit accounts as well as CDs.
You also have the option of a longer period CD (This locks up your funds for a longer,
but the rates are higher).
Then there are a few riskier options.
With these you will have to wait quite a long time before seeing your earnings,
but it is definitely worth it in the end.
Investors who aren’t afraid of taking extra risks should learn to earn good interest along the lines of 5%,
for this you will use a more advanced position of investment.
This is called carry trade.