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  • Writer's pictureSteven Feng

How to Increase Your Interest Rate of Return?

Updated: Feb 10, 2022

When you tuck money away into your savings account, you usually earn some interest on the account balance. Unfortunately, the interest you earn does not generate much income, this is especially true in today’s low-interest-rate environment. In most cases, you end up earning lower than the inflation rate, meaning you are actually losing purchasing power on the money you have saved over time.

From Trading Economics, data has shown that the average deposit interest rate recorded as of December 2021 is 0.05 percent. This is an all-time low.

So if you have money sitting in your savings account and want to earn higher interest without too much risk, you can consider these options.

1. Open a high-interest online savings account:

Many online banks provide high-interest online savings accounts with good rates and no monthly fees. Online banks benefit from lower costs due to the elimination of brick-and-mortar branches, rarely charge monthly fees, and often offer much higher rates as compared to traditional banks. Online banks have an average deposit rate of interest of 0.5 percent, which is much higher than the traditional bank average of 0.05 percent.

2. Joining a credit union:

Credit unions, unlike traditional banks, are owned by people who hold accounts at the credit union. This means they work for themselves rather than for shareholders. Often they provide lower account fees, better account perks, and higher interest rates.

3. Consider buying bonds:

If you don’t mind a little risk-taking and restrictions on withdrawals, you can put your money into bonds instead of keeping them in your savings account. Different bonds with different maturity offer different interest rates and repayment terms. However, if you sell your bond before the maturity date, returns tend to be lower than what you purchased it for.

4. Build a CD ladder:

Certificate of Deposits (CDs) has become an increasingly popular savings vehicle offered by banks and credit unions. They tend to offer a higher and fixed interest rate. However, in exchange CDs require you to leave your money in the account until the maturity date. If funds are withdrawn early, then an early withdrawal penalty will be charged. Due to the lack of liquidity of this method, it is a less attractive choice for savers.

What does KBRZ have to offer?

KBRZ is a financial services company that offers advice on growing personal wealth. We also provide safe investment options for investors who are seeking safe low risk low return to more risky high risk-return opportunities.

One of these options is our KBRZ Lending Fund, this registered high-quality Australian asset with an annualised return rate of 8% and a low to medium risk level, which offers a stable and guaranteed income. This lending fund requires a minimum investment amount of $500,000 and an investment period of 12 months with a management fee of 1%, however, you can join and opt-out any time with no application or exit fee.

Our KBRZ lending fund offers:

1. Financial security and stability:

Our KBRZ lending fund is managed by a professional and experienced team, so you can invest with peace of mind that it will bring stable returns after investment.

2. Higher rates of return than bank interest rates:

Since bank interest rates cannot exceed the inflation level, then for wealth to increase rather than depreciate the rate of return on wealth management products must be higher than the inflation rate.

3. High liquidity:

KBRZ lending fund has a flexible opt-out policy with no withdrawal fee. This fund will not hold up investors’ resources due to a long investment period and interrupt investors’ investments in other areas.

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