Making money typically involves putting in some kind of work. But what if you could make some cash simply by relocating your funds to a different place?
Where you put your money can have a big impact on things like interest rates and bonuses. Below are just a few different ways in which you may be able to make some money simply by moving it around.
Get bonuses for switching bank
Did you know that some banks will pay you for setting up an account with them? This typically comes in the form of a one-off bonus, which could be anything from $50 to $1500 (most bonuses are between $100 and $200).
Unfortunately, there’s often more to receiving this bonus than simply opening an account. Many bank accounts require you to set up a direct debit from another account, as well as keeping your account open for a few months. This prevents people from opening accounts and not putting any money in, or constantly switching accounts to take advantage of different bonuses.
Just which banks offer these accounts? Nowadays, most banks will have some kind of bonus offer – usually for opening checking accounts. Check out this site to compare some of the bank bonuses available. There are new deals constantly being introduced by banks. The best offers often only last for a limited period, so make sure to jump on them early.
Put your money in a high interest savings account
If you want to earn money over an extended period, the best solution is often to put your money into a high interest savings account. When you put your money in these accounts, the bank rewards you each month by paying you a small bonus known as interest.
Unfortunately, savings account interest rates are at an all time low at the moment, with most accounts not offering more than 1%. However, this is still better than leaving your money lying in a checking account where it won’t make any money.
Some of the highest interest savings accounts may come with certain conditions in order for you to earn interest. This can include maintaining a minimum balance in the account or contributing a certain amount of money each month. You may find that savings accounts offered by online banks have better interest rates than savings accounts offered by brick-and-mortar banks. Take the time to compare rates online in order to find the highest interest savings account.
Convert your money to a foreign currency
Currencies around the world are constantly changing value. Some currencies are going up in value, while others are going down. By converting some of your cash into a currency that is rising in value and then transferring it back at a later date, you can end up making a profit. In many cases, you could make a bigger return than if you were to put money into a savings account.
This is known as forex (foreign exchange) trading and is a popular investment strategy. To convert your currency, you usually need to go through a forex broker. It’s worth doing your research into forex trading to find out which currencies are most likely to go up and maintain their value. Be wary that it’s possible to lose your money by investing in a currency that is falling in value. Those that become skilled at accurately forecasting currency values can make as much as a 10% return each year. Just make sure to factor in exchange fees when investing in forex.
Convert your money to cryptocurrency
Another option could be to convert your money into a cryptocurrency. Cryptocurrencies are different to traditional currencies in that they are not controlled by a government or bank. They are virtually currencies that are decentralized. This allows for bigger fluctuations in value – which can mean larger returns for those investing in them.
Bitcoin is the most well known cryptocurrency. In 2010, one Bitcoin was worth $0.08. In 2016, one Bitcoin was worth $434.46. And today, in 2022, the value of one Bitcoin is over $26,000. This just goes to show the returns that can be made from crypto.
You can convert your money into a cryptocurrency using a cryptocurrency exchange. To maximize crypto investment returns, it’s worth doing your research and diversifying your portfolio by buying a range of different currencies. Your cryptocurrency will need to be kept safe (ideally in a digital wallet). You should consider the fact that there will be fees involved when buying crypto.
Consider lending your money
You could also consider temporarily lending out your money to other people in order to make a return. There are several means of doing this.
The most secure option is to invest in US treasury bonds. This involves temporarily lending your money to the government for spending. After a certain maturity period, you can then access the money again and it will have gained interest. These interest rates are typically higher than any savings account.
You can also invest your money into corporate bonds. This involves lending money to a large company for a certain period until the bond matures. It works much the same way as US treasury bonds – although not quite as secure, there is the potential to make greater returns.
Certificates of Deposit can also be considered a form of lending. They are issued by banks and, like bonds, have a maturity date before which you cannot withdraw money. CDs can guarantee a return and offer better rates than regular savings accounts. The longer the maturity period, the larger the return that you can make.
Peer-to-peer lending is another option which involves lending to other everyday people. They then pay back the money in instalments with interest. This will also earn you better interest than a savings account, although can be a bit more risky than investing in bonds. You should always use a trusted peer-to-peer lending platform – the money you lend out will be partially protected when using these platforms.
