When a CD maturesĪt any given time during the year, I have as many as three CD accounts open and in use. I'm currently assessing how much cash I'm willing to put into this CD and not touch it for that time period in order to take advantage of the better interest rate. Last week, for example, my bank sent me an offer for an 18-month CD with 3% APY, 1% higher than the rate offered at that point on my high-yield savings account. Whenever I see that the rates are higher with CDs, and the terms aren't longer than 18 months (since I want to make sure I have access to the money if I need it in the short term), I'll move a chunk of my cash into a CD. Over the last few years, the interest rate on my high-yield savings account has fluctuated quite a bit. Here are four situations when I've moved my money. I estimate that I've made a few thousand dollars with this strategy since then. Since 2020, I've shifted my money between these two types of accounts at least once or twice a year to maximize my passive income-earning opportunities. To get the best value, I decided to use them strategically and move my money back and forth based on which one offered the best interest rate (provided there was no penalty for doing so). One of the best ways I've done that is by keeping my cash in interest-generating savings accounts and CDs.īut during the early days of the pandemic, when the Federal Reserve lowered interest rates, the annual percentage yield kept dropping on both these types of accounts. Outside of my business, I've also looked to find new ways of bringing in passive income from my financial portfolio. Over the past few years, I've done this in a handful of different ways, from introducing new products and services within my business to becoming an affiliate for brands I like and earning money as people buy the products I promote. By clicking ‘Sign up’, you agree to receive marketing emails from InsiderĪs well as other partner offers and accept ourĪs an entrepreneur, one of my biggest money goals is always to find new ways of bringing in passive income.
0 kommentar(er)
