I'm sure you've noticed by now, but your money isn't going as far as it used to. We can attribute this to inflation and the subsequent interest rate hikes. If you haven't heard yet, the Fed just raised interest rates again by .25%.
The interest rate hike means that it will be tight for many people this summer, so I wanted to share one of my favorite passive income strategies with you. But, of course, this is not financial advice.
My current favorite strategy is High-Yield Savings Accounts. If you follow me on IG, you know I talk a lot about these accounts. In fact, I just opened a new one as recently as the end of April. I love them so much that I have four.
A high-yield interest rate account is a type of bank account that pays you more money than a regular savings account. When you deposit your money into a high-yield account, the bank will pay you a percentage of your balance as interest, which is like a bonus for keeping your money with them. The interest rate on a high-yield account is typically higher than what you would get with a regular savings account, which means you can earn more money over time. However, it's important to remember that high-yield accounts may have specific requirements, such as maintaining a minimum balance or limiting the number of transactions you can make, so be sure to read the terms and conditions carefully before opening an account.
Here are my favorite accounts in the order of the APY they offer:
Marcus with Goldman Sachs: Earns 3.90% (not including the recent .25% rate hike), but if you enroll under a referral link, you get 4.90% for three months. Here's a referral link if you're interested.
Capital One 360 Performance Savings: Earns 4.15% (not including the recent .25% rate hike). Here's a link.
American Express: Earns 3.75% (not including the recent .25% rate hike). Here's a link.
Essentially, I love HYSAs because they pay me for parking my cash, and who doesn't like to be rewarded? But, of course, please don't take my word for it. Do your due diligence to make sure these options are for you.
And as always, this isn't financial advice.
Meet me on YouTube on Tuesday for the challenge teaching.