How to Earn Interest on Your Savings Account

How can you earn interest in your savings account? The answer to this question may seem elusive if you’re unfamiliar with banks and financial institutions, but it’s actually pretty simple. This article will help you learn how to earn interest on your savings account so that you can make the most of your money and keep more of it in your pocket rather than giving it to someone else who may or may not put it to good use.

Earn more using a high-interest savings account

You may not earn interest every time you save money, but if you shop around, you can find some high-interest savings accounts that pay well above average. For example, at Synchrony Bank, a popular online bank offering (rates may change), you can open an online checking account and a high-interest savings account. The rewards package includes free Online Banking with Bill Pay and mobile banking; tiered interest rates for balances of $0-$4,999; and fixed APYs* for balances between $5,000 - $99,999. These features ensure that your funds will earn more than what most credit unions offer. *APY = Annual Percentage Yield. APYs accurate as of 10/20/2015. Rates are variable and subject to change without notice after opening your account(s). Fees could reduce earnings on these accounts.

Start early and save often

If you are trying to save money, it's never too early—or too late—to start. The best thing you can do for your finances is to find ways to save and earn interest that doesn't involve spending. Try putting away money in a separate savings account, or consider a certificate of deposit (CD) with a higher interest rate. Investing will help you grow your nest egg and achieve your future financial goals, so look into which options make sense for your life stage and goals. Whether it's starting an emergency fund or investing for retirement, there are plenty of ways to earn more interest by saving more over time. Just be sure not to take on additional debt; only spend what you have saved!

Online banks may offer higher rates

People are attracted to high-interest rates. If you’re saving your money in a regular bank account, you may not be getting as much interest as you thought. A number of online banks pay interest rates that are much higher than those offered by traditional banks. While these accounts tend to require more active management, they can help save you money and earn interest at an accelerated rate. For example, Ally Bank offers 1.85% APY for its Online Savings Account. This is nearly three times what many big banks offer (0.5% APY). To get started with an online savings account, compare some of our top picks here.

The best way to get started is to open up free personal finance software like Quicken or Mint. These tools will allow you to track your spending habits and set goals for future savings so that when it comes time to make investments or start a business, you'll have some experience under your belt already! They also make tracking all of your financial information easy so that you don't have to worry about forgetting anything when tax season rolls around again next year!

Consider opening an online savings account

Today, it’s easier than ever to earn interest in your savings. There are banks out there offering 0.1% APY (that’s 0.01% or 1/10th of 1%) interest on a regular savings account; you might be thinking: why bother? But if you have a little bit of money saved up, you can start earning some serious interest by looking into online savings accounts with slightly higher rates. For example, Bank5 Connect offers an impressive 2.20% APY—more than 10 times what most brick-and-mortar banks offer! The best part is that Bank5 Connect is completely free to use and open to anyone in America who has $100 to deposit. So open an account today and start saving more of your hard-earned cash!

Ways to earn more with your savings account

Earning interest off your savings account is a great way to save money while also earning a bit of interest. While opening a new savings account is a good place to start, there are often other ways you can earn more with your current account. For example, consider an online bank like Ally Bank, which offers free checking and pays interest up to 1.10% on savings accounts that maintain balances of $15,000 or more. Another option? Move money from credit cards with high APRs into low-rate accounts that offer some compensation for not charging high fees and penalties. Credit card companies offer what's called cashback or rewards points that could equal thousands of dollars in saving over time—if you play your cards right. And even if you have a high-interest savings account, look into moving money around at certain times of the year when interest rates are particularly favorable. The American Financial Services Association publishes average annual percentage yields (APYs) each month so keep an eye out for those numbers if you're thinking about shifting funds around. You might be surprised at how much more money you'll earn by taking advantage of them.

The world has evolved very quickly in recent years and technology has been integrated into every aspect of our lives including banking, payments, and investments as well as buying products and services through apps like Uber or Airbnb making them available 24/7 from anywhere using our smartphones.

Put your savings on autopilot

Saving money is as simple as moving some cash from your checking account into a savings account. However, most of us have toggled back and forth between these two accounts, earning little-to-no interest over time. To earn interest, follow these steps: Set up an automatic transfer from your checking account each month. Open a high-yield savings account with at least six months’ living expenses in it (or whatever amount you can comfortably afford). Sit back and watch that money grow! It’s that easy. The key: Automate everything. Put your savings on autopilot; don’t think about it or wonder where your hard-earned cash is going because it's just not worth it! If you are still having trouble saving, try our savings calculator. This tool will help you determine how much money you need to save each month to reach your goals—and if there’s anything we can do to help make sure those goals become reality.