Choose the Right Bank Account: Build Passive Wealth Faster

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

Passive wealth or income is money that you can earn despite not actively working at a job. What you really have to do is simply do the legwork and the income will start flowing automatically.

Earning a comfortable income and increasing your passive wealth reduces financial vulnerability and can pave the way to a fat bank account in no time.

Here is the secret to building your passive wealth from home:

Invest your money in a high-interest savings account online

A great way to make your money work better for you is to choose to invest it in a high-yield account. A high yield account means that if you have, say, $2,000 to invest, you can grow the money to $2,400 in a high yield account instead of @2,200 in a lower interest account. To find out which bank offers you the best rates, you may 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 great interest rates. Remember that online banks do not have all the extras that physical banks have to pay (rent/mortgage) for premises, electricity bill, etc.) so their operating costs are lower than those of conventional banks. Online banks offer up to 5.4% annual interest on the sums deposited with them.

This interest rate is significantly higher than the 2% typically offered by traditional banks. So if you invest, say, $5,000 with your online bank, you can expect to build up a balance of about $5,240 instead of $5,100 at a conventional bank. Thats not all; Online bank accounts can be accessed at any time of the day or night right from your couch. Most of the reputable online banks have 24/7 customer support, so you can always call if you have any queries.

The more you can invest in your savings account, the higher the level of your passive equity. If you leave the sum untouched for a couple of years, you can expect to see an extremely attractive accumulation of passive wealth in your account.

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