Choose the Right Bank Account: Building Passive Wealth Faster

With an increasingly unstable job market and job vulnerability quotient, it makes sense to explore alternate sources of passive wealth. Earning money from more than one job puts up a safety net that protects you from sudden job loss as well as gives some much-needed breathing space when you finish paying your bills.

Passive wealth or income is money that you are able to earn despite not actively working on a job. What you really have to do is simply get the preliminary work done and the income starts to flow in automatically.

Earning a comfortable income and increasing your passive wealth reduces financial vulnerability and can pave the way to a well-padded bank account in a short time.

Here is the secret to build up your passive wealth from your home:

Invest Your Money in a High Interest Savings Account Online

One great way of making your money work for you better is by choosing to invest it in a high yield account. A high yield account means that if you have, for example, $2000 to invest, you can increase the money to say $2400 in a high yield account as opposed to @2200 in a lower interest account. To find out which bank offers you the best rates, you might need to meet with a customer service professional who will explain the account to you.

The good news is that online banking now offers the opportunity to take advantage of excellent interest rates. Remember that online banks do not have all the extras that bricks-and-mortar banks have to pay for (rent/mortgage) for premises, electricity bills etc) so as a result, their running expenses are lower than conventional banks. Online banks offer as much as 5.4% interest annually on sums deposited with them.

This interest rate is significantly higher than the 2% that is typically offered by traditional banks. So if you invest say $5000 with your online bank, you can look forward to accumulating a balance of roughly 5240$ as opposed to $5100 in a conventional bank. That is not all; online bank accounts can be checked at anytime of the day or night right from your couch. Most reputed online banks have 24/7 customer support so you can always call if there you have any queries.

The more you are able to invest in your savings account, the higher will be the level of your passive wealth. If you leave the sum untouched for a couple of years, you can look forward to seeing an extremely attractive build up of passive wealth in your account.

Housing your hard-earned money can lead to an impressive build up of passive wealth with your money working hard for you.

Source by Nirupama N Raghavan