Welcome to NerdWallet’s SmartMoney podcast, where we answer your real-world money questions — in 15 minutes or less.
This week’s question is from Mariam in New Hampshire. She asks: “I have about $3,000 sitting in a savings account that’s not doing a whole lot for me. What’s the best way to make money off what’s sitting in my bank account?”
Consider savings accounts from online banks. They typically offer higher interest rates than traditional brick-and-mortar banks, so you can earn a higher return while keeping your money safe.
Cash management accounts are a trendy alternative to online savings accounts. They’re similar, so compare accounts to see which would give you the best interest rate.
CDs, or certificates of deposit, are another option. They often pay higher interest rates than savings accounts, though you’ll have restricted access to your funds in exchange.
If you want to try your hand at investing, look into robo-advisors. You can get started with as little as $100. One warning: Don’t invest money you need within the next five years; investing is for a long-term goal.