4 Ways to Earn More Money Than With A Savings Account


When it comes to generating money on your savings, it may appear that placing your funds in a standard savings account with a small interest rate and quick access is your greatest opportunity. That may be true in certain circumstances. However, with ordinary savings accounts earning very little interest, an increasing number of people are seeking more effective alternatives. This week’s article gives you four different saving methods that may be better than your average savings account.


Money Market Account

A money market account is among the most basic options for a standard passbook savings account. The Federal Deposit Insurance Corporation (FDIC) protects money market accounts like ordinary savings and checking accounts. Besides providing more effective interest rates than regular savings accounts, money market accounts provide limited checking account features. The maximum amount of checks an individual can make on their account each month usually is around five or ten. In exchange for adhering to this limited withdrawal behavior, money market account holders earn a more significant interest rate than standard savings account holders. A bank that only offers 0.10% interest on ordinary savings accounts may give 0.25% interest on a money market account.

Money market accounts typically include additional limitations, like a mandatory minimum startup deposit amount or a minimum level that must be sustained, along with the monthly transaction limit. If the account falls below the minimum balance required, individuals may be compensated the lower standard interest rate provided on ordinary savings accounts; however, some banks apply a penalty fee. Examine the terms and conditions of your agreement for any limits that relate to the account and all costs that the account may acquire before creating a money market or other similar accounts.

High Dividend Stocks

We're entering into a risky technique of investing your money for better returns. High dividend stocks might lose value even if they provide high yields. You should not invest your emergency fund assets in these stocks. However, you might invest a portion of your savings in them to boost your overall savings yield. High dividend stocks, for example, often yield 3% to 4%, with some paying much more. Dividend Aristocrats are a select group of top high dividend stocks. A Dividend Aristocrat stock must meet the following criteria:

  • Be a part of the S&P 500

  • Meet specified minimum size and liquidity standards

  • Include at least 25 years in a row of dividend growth

The final point is especially significant. While it is true that high dividend yield stocks might lose value, they can also increase in value. But some of the stocks with the most substantial long-term development potential have a track record of regularly increasing dividends. As a result, you will not only receive a high dividend yield, but you will also have the possibility for the stock to appreciate over time.

Corporate Bonds

A corporate bond is a form of debt that a company issues and sells to investors. The firm receives the funding that is required, and the investor receives a predetermined number of interest payments at either a fixed or variable interest rate. When the bond "reaches maturity" or expires, the payments stop, and the initial investment is refunded. The bond is often backed by the company's capacity to repay, which is determined by its future revenue and profitability projections. Physical assets of the firm may be used as collateral in some instances.

High-quality corporate bonds are regarded as a reasonably safe and conservative investment in the investing hierarchy. Bonds are frequently included by investors constructing balanced portfolios to counter risky investments such as growth stocks. To generate a sustainable income supplement, retirees frequently invest a larger amount of their assets in bonds. These investors prefer to add more bonds and less risky assets over time to protect their collected assets.

Fixed Annuities

A fixed annuity is a sort of insurance contract that guarantees the customer a specific interest rate on their payments to the account. On the other hand, a variable annuity pays variable interest based on the success of an investment portfolio specified by the account's owner. In retirement planning, fixed annuities are commonly utilized. Investors can purchase a fixed annuity with a single big payment or multiple payments over time. In turn, the insurance provider promises that the account will receive a specific interest rate. Whenever an annuity owner, or annuitant, chooses to begin receiving monthly income from the annuity, the insurance company determines the payments based on the total amount of funds in the account, the owner's age, the length of time the payments are to continue, and other considerations. This is the start of the payment phase. The payout phase might last several years or the remainder of the owner's life. This is referred to as the accumulation phase.

Your account grows tax-free throughout the accumulation phase. The contract is then annuitized by the account holder, and payouts are taxed based on an exclusion ratio. This refers to the ratio of the account holder's premium payments ratio to the amount collected in the account based on interest generated throughout the accumulation phase. The paid premiums are deducted, and only the part due to profits is taxed. This is often stated as a percentage.


Schedule A Consultation with an Experienced Financial Advisor

We hope this article has been both helpful and informative. However, if you still feel like you need more guidance, we’re here to help. Here at Fourth Avenue Financial, our first priority is your overall financial success, no matter what life events come your way. We want to help you develop, implement, and monitor a strategy designed to address your individual situation to ensure all your investments are setting you up for a path of financial success. If you are ready to start planning for your financial future, we are here to help. Contact us today at (304) 746 7977 to schedule a meeting with one of our experienced financial advisors or schedule online: https://calendly.com/fourthavenuefinancial/introductory-zoom.

Securities are offered through J.W. Cole Financial, Inc. (JWC) Member FINRA / SIPC. Advisory Services are offered through J.W. Cole Advisors, Inc. (JWCA). Fourth Avenue Financial and JWC/ JWCA are unaffiliated entities.


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