3 Ways for Savers to Make Their Money Work Harder

While borrowers have benefitted greatly from low interest rates, things haven’t been so good for those who have been saving regularly.

Of course, it won’t be long before the Federal Reserve will boost rates. But until then, savers have to take steps to get more out of their income.

Here are 3 ways to make your money work harder for you:

1: Shop around

Most savers will never consider another bank for their savings apart from the one they have a checking account with. These are the very same banks that pay very little interest on their savings or CD products. So, it’s best to look around for better deals which you can find where you might least expect it. Try internet-based banks, credit unions or even smaller banks – they might have more to offer than you think.

 2: Opt for a bond ladder

One benefit to picking a CD or a bond with a longer term tends to be a higher interest rate. So, if you have saved a decent amount of money, then it is time to invest in what is known as a CD or bond ladder. This type of investment is put towards both short and long term products with the latter offering a high rate of return on your investment. Not only will you have some money at your disposal but also put away some for the future.

3: Take a few risks

Despite the prior two options, savers aren’t still able to generate income from their savings. So, the next thing to consider is the stock market and healthy profits that blue-chip stocks offer regularly. But it should be emphasized that moving money from your savings to stocks is no simple matter. You stand to lose since this type of financial product is far more volatile than CDs or your savings. Of course, if you have saved enough, then it is time to try this option.