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Are you hoping to earn more interest from your savings in 2024? Keep reading to see what steps one writer took to earn over $1,200 in interest this year.
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We’re nearing the end of the year, but it’s not too late to set yourself up for financial success in 2024. One way to improve your financial situation is by opening up a savings account and making regular contributions to it. This way, you’ll have extra money whenever you need it.
Because I have a high-yield savings account and have continued to set money aside bi-weekly, I’ve earned a significant amount of extra cash from interest payments. Find out how I made over $1,200 in savings account interest this year and what steps you can take to do the same.
I opened a high-yield savings account
The first step that I took was opening a high-yield savings account. For many years, I only used a traditional savings account offered by my regular bank. However, since high-yield savings accounts at online banks tend to have higher annual percentage yield (APYs) than savings accounts provided by brick-and-mortar banks, it’s advantageous to open this type of bank account to maximize your interest earnings.
This past year, APYs continued to climb, so I was able to earn a significant amount of money in interest. Most checking accounts don’t earn interest, so there’s little benefit to keeping your extra savings there. If you don’t yet have a high-yield savings account, now is an excellent time to open one so you don’t miss out on the chance to boost your earnings.
I put my savings on auto-pilot
I’ve always been a big fan of saving money, but I didn’t always follow the best strategy. For many years, I made manual contributions to my savings account, which resulted in me frequently forgetting to save. But that’s not the case anymore. In 2021, I finally automated the savings process, which has allowed me to stay on top of my savings goals month after month.
You can set up automatic, recurring transfers so money is transferred from your checking account to your savings account routinely. This is an excellent way to ensure you pay yourself first. You can do this through your bank’s mobile app or website. Once you set everything up, the process will be automatic so you can save time and feel less stressed.
I think this is one of the biggest reasons I was able to earn over $1,200 this year from interest. If I hadn’t automated the savings process, I likely wouldn’t have saved as much money as I did. The more money you stash in an interest-earning bank account, the more interest you can earn. If you have savings goals you’re trying to reach in 2024, you may want to consider this strategy.
Here’s what I’ll change in 2024
While I feel satisfied after earning more than $1,200 in interest this year, I’m not done saving money. I can’t control APYs, and my high-yield savings account APY may fluctuate. But one thing I can change is how much money I contribute to my savings account. I plan to increase my savings contributions at the start of the year. This will allow me to be even more prepared for future expenses. Plus, I can continue to earn interest while my cash sits in the bank.
If you have been meaning to prioritize savings, now is your chance to set yourself up for success before 2023 ends. Consider opening a high-yield savings account and setting up automated transfers so you earn interest on your savings. Future you will be glad you did. If you’re looking for more ways to improve your finances, review our personal finance resources.
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