One Easy Thing Everyone Should Do to Make More Money

Over the years, I've come to realize a vital truth: money is not intrinsically good or bad. It's a form of energy, a tool that we use to navigate our lives, a necessity for our survival and our comforts. Unfortunately, many of us have been ingrained with the belief that money is somehow corrupt or evil, a notion often rooted in our subconscious, derived from various influences as we grow up. These deeply embedded money wounds can skew our perception and make us overlook the potential benefits that financial tools offer us.

In today's world, it's crucial to reclaim our power around finances and build wealth in a manner that aligns with our values. It's time to leverage these tools to our advantage, and one such powerful tool is a high-interest savings account.

In this blog, we'll dissect the concept of high-interest savings accounts, juxtaposing it with traditional bank savings accounts that offer meager interest rates. Our focus will also touch on how these high-interest accounts can be an effective strategy to counter the erosive effects of inflation. We'll take a close look at the high-interest savings account I use and why this is one simple thing everyone should be doing to make more money!

Understanding Traditional Bank Savings Accounts

Traditional bank savings accounts have long been the go-to option for safekeeping our hard-earned money. They are easy to open, convenient to operate, and the money is federally insured. However, the one area where they lag is the interest they offer on your deposits.

Most traditional banks offer interest rates ranging from 0.01% to 0.03% on checking and savings accounts. While this may seem like a benefit — after all, your money is growing — it's essential to realize that this growth is minuscule. The rate of return is so low that it barely contributes to increasing your wealth, and the drawbacks might be more significant than what meets the eye, as we'll explore in the next section.

The Power of High-Interest Checking and Savings Accounts

High-interest checking and savings accounts emerge as a beacon of light in the vast financial landscape, providing a significantly better yield than traditional savings accounts. With interest rates hovering around 5% (at the moment, they can vary with the times), these accounts don't just offer a place to keep your money but also serve as a platform for its growth.

A major advantage of high-interest accounts is their inherent low risk. They still provide the same federally insured safety for your money as traditional banks. In addition, many of these accounts require no minimum deposit, allowing anyone to start earning interest no matter their initial investment size.

High-interest checking and savings accounts are designed to combat inflation. With their superior interest rates, they can help maintain your purchasing power, ensuring your money's worth doesn't diminish over time. So unlike investing (which can have a much higher return but also have more risk), a high-interest savings account has no risk of losing any money but has a much higher return than your average bank’s rate.

The High-Interest Account I Use

My partner has really inspired me when it comes to becoming more financially literate and mindful. He has been using this high-interest account as part of his financial plan for years, and now we automatically put our savings into this account. We keep no money in standard banks, apart from the literal minimum to pay off our credit cards (I can do a whole other article on credit cards soon, specifically understanding how to get cash-back and sign-up bonuses that will mirror this high-interest savings account return around 3-5%).

Wealthfront is the high-interest account we use because it’s the best one out there. Providing all the security and convenience of a traditional bank, Wealthfront sets itself apart with an impressive return on savings, giving your money the potential to grow at an accelerated pace. With the link I share in this article, Wealthfront currently has a 5.05% interest rate! This is the highest rate I have found in a savings account that:

• Has no minimum

• You can withdraw and deposit as much or as little as you like

• The account has a debit card you can use to spend money in the account

Wealthfront's high-interest account offers all the key features we've discussed earlier — a high return, no minimum deposit requirement, and federal insurance for your money. But they take it a step further, offering accessibility and convenience rarely seen in the savings account realm. One such feature is the availability of a debit card, making everyday transactions seamless and integrating your high-interest account into your daily financial routine.

How To Transfer Your Savings to Wealthfront

It literally couldn't be easier. Any US citizen can open an account using the button below:

And then you transfer money into it like you would make a deposit into any bank. Wealthfront guides you through that process easily, and they will make two small deposits into your old bank (under $1), which you will then log into Wealthfront to confirm the deposit amounts. This will “link” your accounts, and then you can easily transfer money into your high-interest savings account whenever.

Honestly, I recommend straight up getting paid into your Wealthfront account. There is no reason to keep money idly losing value in a normal bank! With the availability of a debit card, your high-interest account no longer needs to be an isolated, inaccessible vault. You can withdraw or deposit money, make purchases, or pay bills, just like you would with a regular account. This flexibility allows your money to work for you, growing steadily in the background without hindering your everyday financial activities.

Not a US citizen? Simply look up “Wealthfront equivalent in your country” ” or “high-interest savings account in your country*.

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Do you have any questions? Drop them in the comments section below!