Earn Cash: 3 Reasons to Open a New Bank Account by the End of the Year

We're not far from the end of the year, but there's still time to make impactful financial changes. One change that many people don't consider is opening a new bank account.

Bank accounts are, first and foremost, a way to keep your money safe. If you trust your bank, you might not see any reason to make a change. But banking isn't just about protecting your money. If you play your cards right, you could also earn quite a bit on top of the money you have saved. Here are the reasons why you may want to consider opening a new bank account by the end of the year.

1. You could earn a lot more interest

One of the benefits of a savings account is that your money earns interest. Some banks offer quite a bit more than others, though. For example, big banks tend to offer hardly any interest. Bank of America and Chase both have savings accounts that earn a dismal 0.01%. If you have $10,000 in savings, it would earn just $1 in interest after spending a year in one of those accounts.

High-yield savings accounts, on the other hand, are currently offering the best rates they've had in years. Many have annual percentage yields (APYs) above 4% and even 5%.

>> Sign up now for a Western Alliance Bank High-Yield Savings Premier account. <<

The Western Alliance Bank High-Yield Savings Premier offered by Raisin is an excellent option. At the time of this writing, it has a 4.30% APY. If you deposit $10,000 of savings into that account, it would earn $526 in interest after a year.

In case you're wondering, the Western Alliance Bank High-Yield Savings Premier doesn't have any account fees, either. And the minimum balance to earn interest is only $1.

2. You could earn a new account bonus

Did you know that some banks will pay you to bank with them? Banks want to attract new clients, which is why they offer bonuses and promotions to new clients who fulfill certain requirements. The requirements vary depending on the bank bonus, but here are a few of the most common:

• Receive a direct deposit
• Meet a minimum deposit requirement
• Complete a minimum number of qualifying activities, such as deposits and debit card transactions

If you're interested, SoFi currently has a valuable and easy-to-earn bank bonus available. As a new SoFi Checking and Savings (Member FDIC) customer, you can earn a cash bonus by setting up direct deposit to your account.¹

>> Sign up now for a SoFi Checking and Savings account. <<

The bonus amount depends on the direct deposits you receive during the 25-day evaluation period. That period starts when you receive your first direct deposit. If you receive $1,000 to $4,999 in direct deposits, you earn a $50 bonus. If you receive $5,000 or more in direct deposits, you receive a $250 bonus.

3. You could lock in a high APY

High-yield savings accounts are offering high rates right now, but these rates can fluctuate. While they've been going up lately due to interest rate hikes, they could also decrease in the future. After all, just a few short years ago, even high-yield accounts had very low interest rates.

If you want more security with how much you earn, consider a certificate of deposit (CD). These have a fixed interest rate and term, such as 5% for five years. You're required to keep your deposit in the CD for the entire term. Otherwise, there will be an early withdrawal penalty.

The best CD rates are competitive and sometimes even higher than what top savings accounts offer. There are also a variety of terms available, generally from six months to five years. Discover® Bank CD are a great choice, as they offer competitive rates and both long and short terms.

Getting more out of your money

No matter how much money you have saved, you need to put it somewhere. It makes sense to put it in an account where it will earn a competitive return. Your money will still be safe, as all the banks mentioned have the same FDIC insurance as the big banks. And that money will grow much more quickly when you have it in the right place.