4 easy tricks to get the most out of your cash

For many people, putting their money to work is the key to financial success. And, there are many ways to do that, like investing in the stock market or putting money in precious metals, like gold or silver. 

You can also put your money to work in an interest-bearing account. These accounts offer an easy, low-risk way to earn returns on your money, but historically, the rates haven't been particularly enticing. That's not the case right now, though, as a series of Fed rate hikes have led financial institutions to offer much bigger returns on your money. 

That's great news if you're looking for an easy, safe way to put your cash to work. But what exactly should you do to get the most out of your money? Fortunately, there are a few simple ways to maximize your returns.

Find out how much interest you could be earning from a CD right now.

4 easy tricks to get the most out of your cash

You don't have to use a complicated investment strategy to get the most out of your cash. Consider one or more of the strategies outlined below instead.

Move your money to an online high-yield savings account

A high-yield savings account is an excellent tool to earn more interest on your cash while maintaining easy access to your funds. These accounts offer significantly higher interest rates than traditional savings accounts, so if you're using a regular savings account, it's time to move your money. 

Right now, many high-yield savings accounts offer APYs over 5%, while regular savings accounts offer just 0.42%. Rates vary by financial institution, though, so be sure to compare options to find the one offering the highest interest rates with minimal fees. Online banks are a great place to start, as they don't have the same overhead costs that big banks with brick-and-mortar locations do. Those savings are often passed on in the form of higher interest rates.

Once you've found the right account, set up automatic transfers to your high-yield savings account. This consistent contribution can help your savings grow steadily over time as you rake in a high rate of interest on your money.

Don't miss out on big returns. Explore what a top rate could offer you right now.

Deposit your cash in a CD with a high rate of return

Certificates of deposit (CDs) are another effective tool for growing your money, but only if you're willing to commit your funds for a specific period. When you put your money into a CD, you agree to leave it deposited for a certain term — typically a few months to a few years. Otherwise, you may face withdrawal penalties that cost you some or all of your interest earnings.

But if you won't need access to your cash in the near future, a CD can be an easy way to get the most out of your cash. Right now, there are numerous CD options offering rates above 5% — and the rates are typically fixed, so you'll earn the same interest rate even if rates drop in the future.

There are also strategies, like CD laddering, that can help you maximize your returns by dividing your money into multiple CDs with different maturity dates. That gives you access to portions of your funds at different intervals, ensuring liquidity while capitalizing on higher interest rates.

Put your cash to work in a money market account

A money market account combines the benefits of a savings account with those of an investment account. These accounts offer higher interest rates than traditional savings accounts and also come with check-writing capabilities, which offers quick access to funds. 

The interest rates on these accounts are also comparable to CDs and high-yield savings accounts, and you'll get more flexibility with a money market account than a CD. But it's worth noting that many require a higher initial deposit, so be prepared to meet this requirement if you want to start earning competitive interest rates. 

You should also research any monthly fees, withdrawal limits and minimum balance requirements associated with your chosen money market account. You may find that a high-yield savings account offers similar account access with fewer fees, letting you get more out of your cash.

Find out more about what you could be earning right now.

Double your returns with a high-yield checking account

Checking accounts have traditionally offered minimal interest, but high-yield checking accounts have changed that narrative. These accounts provide interest on your checking balance while offering the convenience of check writing, debit card usage and online banking. 

If you open this type of checking account in conjunction with one of the other interest-bearing accounts above, you're doubling the opportunity to earn big interest on your money. However, many high-yield checking accounts have specific balance requirements you must meet to earn the advertised interest rate and avoid fees — so just make sure you can meet the requirements before opening one.

The bottom line

There are a few easy ways you can get the most out of your cash — and most come with minimal or no risks involved. But each financial situation is different, so be sure to tailor your approach to your financial goals, risk tolerance and liquidity needs. That's the only way to make your approach — and your money — work for you.