Earn Money with High Interest Savings Accounts

High Interest Savings Accounts Are Still A Great Deal

I recently came into a small inheritance when my grandmother passed away. It's not enough money to do anything substantial (such as buy a new Lexus), but it does give me some breathing room as far as covering my monthly bills. For the time being, I no longer have to worry about living paycheck to paycheck and I can start building up a nest egg. I want to be smart with this money and earn a return on the principal. But since I'm unwilling to invest in the shaky stock market, I'm looking at high interest savings accounts instead.

I've done a bit of research about how best to handle my money, and I think there are many reasons that high interest savings accounts are more attractive at this point than getting into the market. First of all, I love that most high interest savings accounts are FDIC insured. This means my funds are 100 percent backed by the government and are guaranteed even if the bank I use happens to go under. In this time of worldwide financial instability and uncertainty, it's smart to have that kind of guarantee on my side.

A second reason high interest savings accounts are better than investing in the market is the relatively steady rate of return. The actual percentage I receive will fluctuate (after all, this isn't a CD or money market fund) but should be in the 4-5 percent range. I haven't sat down to really compare rates yet, but a cursory glance at some of the top high interest savings accounts across the country has given me an idea of what to expect. That 4 or 5 percent rate of return compares favorably to what some blue chip stocks would provide -- and my investment is entirely without risk.

And finally, high interest savings accounts are attractive because they are extremely liquid. I don't have to tie up my money for a certain period of time, nor do I have to fill out extensive paperwork in order to make a withdrawal. I can get at the funds for any reason at a moment's notice without having to pay any penalties or fees. That's how it should be because it is my money after all, but that's usually not how it works in the financial world. I like the idea of easy access because you never know what kind of budgetary emergencies will strike before payday.

I'm thankful that I've got a bit of a cash cushion now, and I definitely want to earn a decent return on the funds. High interest savings accounts give people the opportunity to do just that without putting the principal at risk. I know there's a chance I could earn more in the stock market, but there's also a chance I could lose everything. I'm just not that much of a gambler, so I'll stick to high interest savings accounts!