Earn As Much Interest As Possible

Hi! Today, I am writing to encourage you to earn as much interest as possible. You should get the maximum interest that you can. 

Before I start, I want to let you know that no matter where you are on your financial journey, you can get better. I have faith in you. 

Now Let’s Get Started Discussing Getting the Maximum Interest.

First, let me tell you what made me think about this subject today. 

Recently, I was talking with someone about her emergency fund. (Let me say upfront that she has a fair amount of money. Let’s call her Rich Regina.) Rich Regina told me that she has a $1 million emergency fund. “That’s cool,” I said. “It sounds like you are set as far as an emergency fund.” Then, the next words out of her mouth shocked me. She informed me that she keeps her money in a series of big brand-named national banks that have branches in her city. “At what interest rate?” I asked. She proudly answered that she thinks she gets 0.04%, which is higher than normal because of her high balances. “Do you mean 4%?” I asked. No, she meant 0.04%!

That Is Not Maximum Interest!

Now, my dear friends, 0.04% is practically nothing! It’s less than 1%, not even half of a percent! What does Rich Regina earn on her $1million that she has spread out amongst her banks? Well, at 0.04%, her $1 million will earn $4000 a year or $333.33 per month. That amount might pay a monthly bill for some people, but probably not much for her. In her case, a large luxurious home and a Range Rover have extra large utility, tax, and gasoline bills. But, that’s not the point. The point is that we should always be looking to maximize our earnings, and therefore maximize our interest. Accepting 0.04% in interest is not doing it. Instead, it is allowing our money to be lazy and not work hard. 

Why Get Maximum Interest? 

Interest is not nothing. It is reported that most people who are wealthy have at least 7 streams of income, and interest is one of the streams of income that everyone can have.  Regina is rich, but how much better can she do with her $1million in the banks? Well, let’s see.  

One of my favorite banks, CIT Bank, has a savings account that currently pays 3.25% interest. If Rich Regina were to deposit her money into one of those accounts, she would earn $32,500 a year, or $2,708.33, per month. That’s even enough to pay one of her high bills. 

Not All Into One Bank

Now, no one should stick $1Million into one bank account, because bank accounts are only insured by the FDIC for up to $250,000. So, of course, I recommend that she spread her money out into various banks. Since I only know of 2 banks that offer 3.25% interest, I shared the names of two others that offer 3% interest, also. At 3% annual interest, her $1million would earn $30,000, or $2500 monthly, which is still enough to pay one of her utility bills. 

Are You Earning Maximum Interest On Your Savings Accounts? 

Whether you are already wealthy or trying to get on the path to wealth, you should be trying to get maximum interest. You should do this by moving your money to an online high yield savings account. Why online? Some online banks, called neo banks, have no brick and mortar locations. Because of this, they are able to keep their costs down, and instead pay their customers higher interest. 

Finally, are you ready to make the switch? 

Where Can I Get the Highest Interest Rates?

Some of the online only banks with high yield savings account include:

• CIT Bank (their Savings Connect account pays 3.25% at the time that I am writing this)
• Lending Club (3.25% at the time that I am writing this)
• Ally Bank (3% at the time that I am writing this)
• Marcus Bank by Goldman Sachs  (3% at the time that I am writing this)

Key Takeaways

• It is said that the average wealthy person has at least 7 streams of income.
• All of your streams of income do not have to be equal in size.
• Interest is a stream of income.
• If you want to be excellent with your personal finances, you should earn the maximum interest.
• One of the best ways to earn the maximum interest is with an online high yield savings account. 
• The high yield savings accounts with which I am familiar are:
  • CIT Bank (their Savings Connect account pays 3.25% at the time that I am writing this)
  • Lending Club (3.25% at the time that I am writing this)
  • Ally Bank (3% at the time that I am writing this)
  • Marcus Bank by Goldman Sachs  (3% at the time that I am writing this)

Truly, I hope that this letter inspires you to seek and obtain a high yield savings account. It is the perfect place to stash your emergency fund!

Until next time, stay safe and have fun building your wealth.

Hugs, 

Rich Mom

Do you want to read more of a mom’s letters written to inspire financial independence by age 30? Check out:

My 3 Streams of Passive Income

Ten Secrets to Building Wealth

There’s also:

What Is Interest? Rich Mom Answers

Who is Rich Mom? 

If you stumbled upon this post and you are wondering who Rich Mom is, check out my “About Rich Mom” page. 

Also, please note: I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor. 

The information shared here is not intended as financial advice, just entertainment and encouragement.