Can i make a bank account that earns money over time?

Question

Can i make a bank account that earns money over time?

Answer 1

You can put your money into a standard bank account - but that will not make you any money.

You can ask the bank about their 32 or 64 day accounts.  If you think you will need the money soon, put it into your credit card for a little bit of interest.

You should ideally go with the money market or unit shares, and leave it there for 50 years!  Try get as much compound interest as possible.

Answer 2

Not any more. The interest rates on savings accounts is abysmally low. And the monthly fees eat up the interest.

Put your money in dividend paying stocks.

Answer 3

Yes.

Isn't that called interest?

The bank rewards you for showing interest in their bank, it helps their reserves if you deposit money and leave it undistirbed. What i mean by undisturbed is you can put money in, just don't take it out for a month at least

Answer 4

Yes, the highest interest rate bank account is known as a money market account.

Answer 5

First things first. Risk is connected directly to return. Bank accounts usually set you up with an annual return of less then 0.5%. This rate of return is lower than the risk-free rate, so if you are not seeking liquidity (the ease with which you are able to convert securities into cash without losing much of the initial investment), other investment vehicles are advised, such as short and long term bonds, or treasury bills. [Treasury bills, notes and bonds can be bought for the risk-free rate ( the maximum interest rate for an investment with no risk).]

However, if you want to be able to withdraw funds without any penalty, the best you can do stay with the savings account, or go with the NOW (negotiated order of withdrawal) account because that can be linked to your checking account for free.

Answer 6

Yes, if you open a savings account at almost any bank you will earn interest.