6 Ways to Maximize Bank Deposit Returns

Even though the stock market is heading higher — albeit in fits and starts — many people are still interested in cash investments . And, even if you don’t have a great deal invested in cash , it is nice to maximize your bank deposit returns. Indeed, cash offers lower returns than many other investment. But it is still your money, and it is important to put it to work for you. Here are 6 ways you can maximize bank deposit returns:

1. Consider credit unions : In many cases, a local credit union will offer higher returns on savings accounts and CDs than retail banks. Shop around to see if you can get a better rate from a credit union. You can look for a credit union you qualify for at www.creditunion.coop .
2. Look for high-yield accounts online : There are a number of online institutions that offer higher yield accounts. Some of them, like ING , offer free money bonuses when you open an account. These accounts provide higher yields than many traditional accounts.
3. Create a CD ladder : You can use a CD ladder to take advantage of different interest rates. Plus, you’ll have your CDs maturing at regular intervals so that you can use the money penalty-free if you need it. Plus, CD laddering allows you to take advantage of times when rates are higher . You should invest in CDs when the rates rise, locking them in before rates go lower.
4. Considered brokered CDs : Brokered CDs are those that are offered through brokerages. They offer higher rates of return. However, you should be aware that not all brokered CDs are FDIC-insured, and you could be taking a risk.
5. Rewards checking : You can find some rewards checking accounts that pay you a yield. However, you may have an account minimum to pay.
6. Leave your money in as long as possible : Instead of paying bills immediately, keep your money in the interest-yielding account as long as possible. While you want to pay your bill in a timely manner to avoid fees, you can schedule payments online to come out on the due date, or a day before. This way, your money sits and gains its yield for as long as possible.

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