Should my bonus go on overpaying the mortgage or into a high-interest savings account?
Our mortgage is split into two parts, as we ported a section of our original mortgage when we moved in 2021. The 2.5% fixed-rate part of the mortgage (on a balance of approximately £210,000) is coming to an end next August.
I’m incredibly worried about the possible interest rate rise when we have to renew. We have already absorbed a £300 hit when we renewed the other part of the mortgage last year, and I’m not sure how we would cope if our bill rose by the same again – but looking at the current rates, that may well be what we’re faced with.
I am due a one-off bonus at the start of November (likely to be between £5,000 and £6,000) and I would like to use it to help ease our financial burden. Some of it needs to go on house repairs, which we’ve been holding off on, and hopefully pay for a holiday, as we’ve not been able to have one this year – leaving between £2,000 and £3,000 for the mortgage.
Currently, about half of our monthly mortgage payment is interest. Would it be better to overpay the mortgage by £2,000 to £3,000 in one lump sum as soon as I get the money (presumably reducing the percentage interest due, and therefore increase the proportion of our monthly payments that goes towards paying off the mortgage itself) – or would it be better to invest in one of the higher-interest savings accounts available?
I’m
nervous about the fixed-rate savings account options – if our mortgage
does increase again by a few hundred pounds, we may need access to that
money to help offset the payments for the first few months while we
adjust. However, I know the more flexible savings account options offer
lower rates, which may affect which of the options is more beneficial.
CM
A I’m not surprised that you are incredibly worried about possible interest rate rises when you come to the end of your fixed-rate term. If your revert rate – the technical term for the interest rate you move on to when a fixed rate ends – next August was the eye-wateringly high 8% (or higher) currently charged by many mortgage lenders, your monthly mortgage repayment (assuming a 25-year term) would go up from £940 a month to £1,620 – an increase of almost £700. If the revert rate was just double your 2.5% fixed rate, the monthly increase would be more like the £300 increase you have already had to swallow.
But that assumes that you move on to your lender’s revert rate. You can avoid doing that by arranging to switch to a new mortgage deal in time for your current fixed rate coming to an end in August. Under the government’s mortgage charter, all lenders that have signed up to it must give you the option of switching.
You can also ask to make interest-only payments for a maximum of six months to reduce your monthly payments, or extend your mortgage term (which has the same effect).
As to whether it is worth using some of your anticipated lump sum to pay off less than 1% of your mortgage, I’m not sure. I certainly wouldn’t commit any of it to overpaying the mortgage until after you’ve been on holiday and had the house repairs done, as building costs can have a nasty habit of creeping up as work is done. If you do have £2,000 left over, using it to overpay the mortgage will have a negligible effect as it would save you £8 a month on your current deal. Putting £2,000 in a no-notice account paying at least 5% in interest would earn you £100 a year, which is the equivalent of £8.30 a month.
As the Bank of England puts rate rises on hold, what are the ups … and the downs?
With Britain appearing to have hit peak interest rates, homeowners and buyers may feel like celebrating, while savers will be shaking their heads.
The Bank of England’s decision to hold rates at 5.25% for a second time came after 14 increases. So what does this mean for consumers? Are we likely to see more affordable mortgage deals? And can we no longer expect bumper savings rates from the banks?
What just happened?
It was widely anticipated that rates would be left unchanged at 5.25% – their highest level for 15 years.
Over the past two years, mortgage borrowers have seen the cost of a home loan spiral. At the same time, savers finally started to enjoy some decent returns after years in the doldrums. A number of accounts are currently paying more than 6% interest, particularly some of those offered by the so-called challenger banks.
But the Bank of England was keen to point out that dropping rates was not on the agenda yet. Governor Andrew Bailey said last week: “It’s much too early to be thinking about rate cuts.”
Damien Fahy, at website Money to the Masses, says that if we are at peak rates, what is important now is how long we stay there. “The worry is that most consumers seem to believe that rate cuts will be around the corner, but they are probably getting ahead of themselves,” he says.
Are there any good savings rates?
After the highs of the summer, there has been a definite slowdown, with only a handful of providers offering fixed-rate savings bonds paying more than 6%.
But this does not mean there are no opportunities, says Sarah Coles at investment platform Hargreaves Lansdown. “We may well have passed the peak, with some of the best fixed rates gradually disappearing. However, there are still decent rates around that we’d have given our left arm for a year ago.The worry is that most consumers seem to believe that rate cuts will be around the corner, but they are probably getting ahead of themselves
“So if you have savings you won’t need for the next year or so, it’s still worth taking advantage while you can,” she adds.
Fahy says people should move now to secure the best rates, as banks will not hesitate to pass on any decreases (even though many did dawdle when it came to passing on increases).
However Rachel Springall, at financial information site Moneyfacts, says challenger banks may continue to offer good deals as they aim for funding targets and not alignment with the Bank of England.
When comparing rates, considering the more unfamiliar brands is always wise, assuming they have the same deposit protections as a big high street bank, she adds.
Savers looking for a good deal may find some value in notice accounts – once they can plan how they may want to withdraw their money – which limit the number of withdrawals a year. For example, Monument Bank has increased the rate on its 35-day notice account to 5.22%.
But consumers must be able to move quickly. “Whichever deal is appropriate, they must be clear on the rules and eligibility an account sets from the outset, and need to be quick to apply for a deal when monitoring the best rates,” says Springall.
What about mortgage rates?
The cost of new fixed rates – the vast majority of UK mortgage borrowers are on this type of deal – has been falling for some time. Figures from property website Rightmove on Thursday showed the average new five-year fixed-rate deal was 5.36%, down from 5.97% a year ago. The average two-year fix is 5.81%, down from 6.22% a year ago.
David Hollingworth, of broker firm L&C Mortgages, says borrowers can now look forward with a little more confidence, but adds that we will not see a return to the rock-bottom deals of the recent past.
“Remortgage borrowers shouldn’t fall into the trap of holding off from shopping around in the hope of dramatic cuts to rates, especially as the gap between standard variable rates [SVRs] and the best rates has only widened,” he says. “Getting a rate in place well before the end of your current deal still leaves flexibility to review it if they continue their downward trajectory.
“In the meantime, having a rate ready for a smooth switch will avoid being hit by a high SVR, which could prove costly, even for a short period.”
Fahy says borrowers should be aware of lenders trying to attract them with low interest rates but “eye-wateringly high” product/lender fees. “Consider the full cost of a mortgage and, if rates remain high for an extended time, we might see more of these types of deals.”
And pensions?
If there is an end to volatility as a result of the decision to keep interest rates on hold, pensions – which rely on market stability – could benefit, according to Becky O’Connor of PensionBee, a company that helps people combine old pension plans into one new plan.
“For those approaching, or in retirement, who have found managing their retirement and withdrawal plans stressful because of market ups and downs, this potential change in monetary policy direction might offer some respite,” she says.
“For those with money tied up in savings, it will be important to keep chasing decent rates, as high-paying accounts may not hang around for long.”
However, the good returns offered by annuities, which typically pay out a set income for life to a pensioner, may be limited.
For years, rates on annuities had been derisory, leading them to be dismissed as an option for many approaching, or in, retirement. But with higher rates came better offers.
Chris Flower, at wealth management company Quilter, says: “For retirees looking to purchase an annuity, as interest rates level off, this may mean the level of income they can secure levels off, too.”
How to rebuild your career after redundancy
Work out what you need, then follow a network map to get to your ideal destination
Redundancy can be distressing, bringing with it the shock of uncertainty, rejection and even a kind of grief. But it can also bring opportunities for change. We look at how to get back on track after losing your job.
Find out what you are owed
If you worked for the company for two years or more, you should be paid statutory redundancy. The amount depends on age and the number of years you worked there.
Statutory pay is equal to one week’s pay for each year’s employment when you were aged between 22 and 40 years, as an example; there’s a calculator on gov.uk where you can work out what you should receive. Your employer might have to pay more on top of this, depending on your contract.
If you suspect that your redundancy isn’t justifiable, or genuine, then you may be able to challenge it. Your local Citizens Advice advisers can help.
While you look for a new job, you could be entitled to benefits – contact a local adviser to find out.
Work out what you need
Redundancy is a pivotal point, and can feel overwhelming. What should you do next? Should you be applying for as many jobs as you can? Should you be retraining for something new?
Before deciding, consider your obligations, says Jo Castro, a coach who has helped people back into work after redundancies and other career gaps.
“What are your responsibilities – mortgage, rent, family expenses? What is the amount of money you need to earn? Be aware of that when planning your next steps,” she says.
Decide what you want
“I know it sounds a bit naff, and it can be difficult to do when you’re feeling bruised, but you do have to try to reframe it as a real opportunity,” Castro says. “Think about what you didn’t like in your old job. What you really liked. What you can do differently now.”
Your skills might make you a good fit for a sector you would never otherwise have considered, says Alistair Morris, a career development expert at the CV and Interview Advisors. “If you’ve been in the same line of work for a long time, you may not be aware of opportunities in new growth areas where your skills might make you a good fit – things such as renewables or cybersecurity.”
Beware the side hustle
Pause before you throw yourself into starting out on your own. “Lots of people start with really big ideas of what they want to do. But while big ideas are fine when they’re in our heads, whether we’re actually going to be able to enact them, or even really want to, is a different thing,” Castro says.
She urges particular caution when it comes to building a business around your passions and hobbies, as it can change your relationships with the things you’ve always loved doing.
“When something you love becomes your work, that can take the joy out of it,” she says.
Make a network map
Whether you want to stay within the same industry, or move into a new sector, the network of people you know – through work, friends and family – is a valuable starting point.Get in touch with some of your existing contacts to let them know you are newly available for work
“Take a large piece of blank paper and draw a ‘network map’ with the names of all the people in your work network, however close or distant, and friends and family, too,” Castro says. “Think about who you have a strong link with, and those you have less strong links with.”
The next step might be to get in touch with some of your existing contacts to let them know you are newly available for work, or sending speculative job applications, or asking people in a line of work you’re interested in for advice on retraining.
Sort out your CV
“A lot of people may not have written a CV for decades,” Morris says. The old format of name, contact details, short personal statement, and then a reverse-chronological list of your professional experience, is still de rigueur, he says.
But, if you are looking for work in a new sector, or have retrained for something completely new, your last job may not be the most important one.
You need to get the most pertinent information right up at the top of the page, in the personal statement, Morris says, and tailor that part of your CV to fit each job you apply for.
“You are building a business case as to why that employer should be interested in you, and that means looking to the future and what you can offer rather than offering a retrospective glance at what you’ve done in the past,” he adds.
Build your online presence
To get noticed by the right people, you need to be in the right place, says Rachel Brushfield, a career strategist and coach at the Talent Liberation Company. “Who is your target audience, what language do they use and what oceans do they swim in?”
For “oceans”, read social media platforms. In a lot of cases, it’s LinkedIn. The platform says it has 950 million members worldwide and, love it or hate it, it has become a go-to for professional networking in a host of industries.
For job-hunting purposes, a LinkedIn profile page should have a “professional-looking head and shoulders photo on a neutral background”, Morris says.
“Change that standard block of colour at the top of the profile page to something personal to you – a work-related image, or a banner with your contact details.”
In sections on your former jobs, include concrete achievements that are personal to you. “See yourself through the eyes of employers you want to attract,” Brushfield says. “What problems do they have that you can help with, what gives you credibility – testimonials, awards? What makes you ‘marketable’?”
Staff exodus could hinder expansion of free childcare in England, providers say
A mass exodus of childminders and nursery staff risks scuppering the government’s flagship new funding for parents of young children in England, according to a new coalition of early years providers and campaigners.
More than half of all nursery workers surveyed by the Early Education and Childcare Coalition (EECC) said they were considering or planning on leaving the sector in the next 12 months.
In the spring budget, the chancellor, Jeremy Hunt, announced plans to massively extend the government’s offer of 30 hours of “free childcare” to children aged between nine months and two years by 2025, billing it as “the single biggest investment in childcare in England”. But the EECC said there are likely to be a “lot of disappointed parents” if staffing means places are undeliverable.
The report – Retention and return: delivering the expansion of early years entitlement in England – estimates that about 180,000 extra children will enter childcare settings by 2025, at the same time as large numbers of staff say they are planning to leave because of low pay, lack of career progression and increased workload.
The first tranche of free hours – 15 hours of childcare for eligible working parents of two-year-olds – is due to start in April next year.
“It pains me to say it but I think there’s going to be a lot of disappointed parents,” said Sarah Ronan, the acting director of the EECC. “Just because the chancellor says you get 30 free hours – like Oprah handing out free cars – it doesn’t make it a reality. What makes it a reality is having the infrastructure and a well-trained, qualified, well-paid workforce in place.”
The report found that only 17% of nursery managers said they could offer the extended “free hours” entitlement because of the recruitment crisis, while 35% said they would limit the number of places they offered unless the government helped with recruitment.
The situation is more acute for nurseries offering provision for children with special education needs and disabilities (Send), said the EECC, with 87% of nursery respondents and 63% of childminders saying they were working with more children with Send, often without the right support for the child. Other workers reported an increase in workload, which they said was exacerbated by the recent relaxation of staffing ratios for two-year-olds from 1:4 to 1:5.
Years of underfunding have left the early years workforce “underpaid, overworked and feeling disrespected”, said Ronan. A freedom of information request by the Early Years Alliance revealed in 2021 that the government had knowingly underfunded “free hours” over the past decade.
From September 2023, funding rates per child will increase from an average of £5.29 to £5.62 for three- to four-year-olds, and from an average of £6 to £7.95 for two-year-olds. The Women’s Budget Group argues that a rate of £9.03 an hour for three- to four-year-olds is required to cover costs.
A spokesperson for the Department for Education said its data indicated a stable workforce. “[B]ut we know there is more to do, which is why we are launching a new national recruitment campaign in the new year, and an accelerated apprenticeship route into the sector to help recruit new staff,” they said. “To support existing staff we are investing hundreds of millions of pounds to increase rates paid for government-funded hours and are providing a package of training, qualifications, and expert guidance worth up to £180m.”
The EECC – a body of more than 30 organisations including charities, parent campaign groups, early years providers, trade unions and business groups – surveyed 1,000 early years educators and interviewed 60 in focus groups.
It calculates that as many as 100,000 new staff members will need to be found before the end of 2025, if those nursery workers currently intending to leave the profession go through with their plan. Even if the sector retains workers, its more conservative scenario estimates than 22,000 workers will have to be employed to service an additional 180,000 children expected to take up “free hours” by the end of 2025.
Best High-Yield Savings Accounts for November 2023
Savers who want to earn the most interest on their money should look at the best high-yield savings accounts. With interest rates on the rise, savers are earning higher rates in HYSA than they have in more than a decade.
These accounts offer the functionality of traditional savings accounts but receive a much higher interest rate to grow your balances. Many of these accounts have no opening balance or minimum balance requirements, so they are open to every type of saver. Learn more about how to choose your savings account, how they work and the best type of account based on your goals.
Featured partner
Discover Online Savings
APY*
4.35%
Min. deposit
$0
Monthly fee
$0
Best high-yield savings accounts compared 2023
| Name | APY* | Minimum Deposit | Best For |
|---|---|---|---|
UFB Priority Savings | 5.25% | $0 | No limits to earning best APY |
5.05% | $5,000 | Unique promotions | |
5.00% | $0 | Customer support | |
4.60% | $0 | Welcome bonus | |
4.50% | $100 | Multiple high-yield products | |
4.40% | $0 | Access to cash | |
Discover Online Savings Member FDIC | 4.35% | $0 | No-fee wire transfers |
4.35% | $0 | Minimum balance required | |
4.35% | $0 | All-around banking | |
4.30% | $0 | Monthly maintenance fees | |
4.15% | $0 | Small business owners |
Our recommdations for the best HYSA for November 2023
Best for earning high APY*: UFB Priority Savings
UFB Priority Savings
APY*
5.25%
Min. deposit
$0
Monthly fee
$0
UFB Priority Savings ranks among the best high-yield savings accounts. Customers can earn 5.25% APY* across all of their balances with no minimum deposit. Additionally, there are no maintenance or service fees to worry about. Customers receive a complimentary ATM card and can transfer money between accounts for free.
Best for unique promotions: CIT Platinum Savings
CIT Bank Savings
APY*
5.05%
Min. deposit
$5,000
Monthly fee
$0
CIT Bank's Platinum Savings Account is an excellent choice for those seeking a high-yield savings product. The bank's rate stands out in the market, providing customers a competitive edge in growing their savings. Currently, the CIT Bank's Platinum Savings Account offers a 5.05% APY\\* with a balance of $5,000 or more, but you can start with as little as $100 with 0.25% APY\\*. What makes CIT Bank particularly intriguing are its unique promotions, which typically offer substantial bonuses or even higher interest rates for new deposits or accounts.
While the bank operates primarily online, its user-friendly interface and top-notch customer service make banking a breeze. Security is also paramount at CIT Bank, ensuring your funds are safe and protected. However, keep in mind that this savings account may not be the best choice for those who prefer traditional, brick-and-mortar banking, or for those who frequently need to withdraw funds, as it might come with certain limitations. In summary, the CIT Bank's Platinum Savings Account, with its high APY* and attractive promotions, is an excellent option for customers looking to maximize their savings potential.
Best for customer support: Bask Interest Savings
Bask Bank Savings
APY*
5.00%
Min. deposit
$0
Monthly fee
$0
The Bask Interest Savings Account offers a high rate with no monthly account fees and no minimum account balance. And Bask Bank is a standout for service. Customers can call the support line between 7 am and 7 pm CST Monday through Friday, and on Saturdays between 9 am and 4 pm. There’s also information online and on the Bask app. The account doesn’t provide an ATM or debit card, however. It is important to note that while there does not appear to be a minimum opening deposit required, any account with no balance will be closed after 15 days.
Best for multiple high-yield products: Quontic High Yield Savings
Quontic Hight Yield Savings
APY*
4.50%
Min. deposit
$100
Monthly fee
$0
Quontic stands out for the many ways you can increase the earning potential of your cash. In addition to their high-yield savings account growing your money at a high rate, Quontic also offers certificates of deposit and money market accounts.**.
Best for welcome bonus: Sofi Savings & Checking
Sofi Savings
APY*
4.50%
Min. deposit
$0
Monthly fee
$0
If you want to earn a welcome bonus for opening a high-yield savings account, consider Sofi Savings & Checking. New customers can earn up to $250 when they open a new account and set up direct deposit. Plus, the account earns a high interest rate with no account fees.
Best for access to your cash: Marcus Online Savings
Marcus Savings
APY*
4.40%
Min. deposit
$0
Monthly fee
$0
Customers who need access to their cash quickly will benefit from a Marcus Online Savings from Goldman Sachs, a company well-known for investing and private banking. The account has no monthly fees or minimum deposit requirements while earning a high interest rate. Customers enjoy same-day transfers of up to $100,000 to or from other banks, so there's no delay in accessing their money.
Best for minimum balance required: Barclays Online Savings
Barclays Savings
APY*
4.35%
Min. deposit
$0
Monthly fee
$0
Accounts with no minimum balance requirements help customers avoid monthly fees. The Barclays offer a high rate of interest without monthly fees or minimum balance requirements.
Best for all-around banking: Citi Accelerate High-Yield Savings
Citi Accelerate High-Yield Savings
APY*
4.35%
Min. deposit
$0
Monthly fee
$4.5
Deposits searching for a high-yield savings account with no minimum should open a Citi Accelerate High-Yield Savings account. It offers a high interest rate with no minimum to open the account and no limit on earnings. The account is FDIC-insured and Citi is one of the world's largest financial institutions. Citi also offers money market accounts (MMA), credit cards, investing and other financial products.
Best for no-fee wire transfers: Discover Online Savings
Discover Online Savings
APY*
4.35%
Min. deposit
$0
Monthly fee
$0
Discover Online Savings is the ultimate choice for those seeking a hassle-free wire transfer experience without incurring any fees. With their robust online banking platform, customers can effortlessly initiate wire transfers from the comfort of their own homes, eliminating the need for time-consuming visits to physical branches.
Discover prioritizes customer convenience and ensures that hard-earned money can be moved swiftly and securely, all at no extra cost. Furthermore, their Online Savings account offers a highly competitive Annual Percentage Yield (APY), allowing individuals to maximize their earnings on savings.
By combining the convenience of fee-free wire transfers with a lucrative APY, Discover empowers its customers to effortlessly grow their savings while enjoying unparalleled flexibility and financial freedom. Member FDIC.
Best for monthly maintenance fees: American Express HYSA
American Express High Yield Savings
APY*
4.30%
Min. deposit
$0
Monthly fee
$0
Avoiding monthly maintenance fees ensures that the interest you earn is yours to keep. While primarily known for offering credit cards, American Express offers a high-yield savings account with no monthly maintenance fees and a solid interest rate. With this account, your interest compounds daily and is deposited into your account each month.
Best for small business owners: Live Oak Personal Savings
Live Oak Personal Savings account
APY*
4.15%
Min. deposit
$0
Monthly fee
$0
Customers can quickly open an online savings account with Live Oak to receive a competitive interest rate with no monthly fees or minimum balance requirements. Two features that set it apart are the ability to initiate wire transfers from your savings account and to connect with QuickBooks. These features make it an ideal savings account for entrepreneurs and small business owners. While there are no minimum deposit or balance requirements, if your account balance is less than $10.01 for 24 consecutive months, the bank will close your account and charge a dormant account fee equal to your remaining balance.
More High Yield Savings Accounts
What is a high-yield savings account?
A high-yield savings account is a traditional savings account but with a higher interest rate. Just like savings accounts, they are liquid, so you can add or withdraw money at any time. Additionally, they are guaranteed up to $250,000 by the FDIC.
How do high-yield savings accounts work?
High-yield savings accounts offer much higher rates of interest than traditional savings accounts. They work the same way as traditional savings accounts, but many are online-only accounts that cannot be opened in a traditional brick-and-mortar branch. These accounts must also follow Regulation D, which limits the number of certain types of withdrawals each month.
Many high-yield savings accounts are offered by online banks and have reduced fees and balance requirements. In some cases, there are no minimum balance requirements to open or maintain an account. Plus, many eliminate monthly service charges, so there are costs to keep your account open.
However, some high-yield savings accounts require larger balances to avoid fees or earn the best savings account interest rates. Banks may implement tiered interest rates that offer the best rates to certain types of customers.
How to choose your high-yield savings account
When comparing the best savings accounts, customers should focus on fees, interest rates and the functionality of the accounts. Here are a few features that matter most when choosing your account.
- Opening balance requirement. How much do you need to deposit when opening your account? Many accounts allow customers to open an account with no minimum balance or as little as one dollar.
- Monthly fees. Most banks waive the monthly fees when you maintain a minimum balance. Some banks waive fees entirely.
- Monthly minimum balance. Some high-yield savings accounts require customers to meet a minimum balance to earn the best savings account rates.
- Interest rate. The amount of interest you'll earn based on your balance is advertised so you know how much your money will make.
- Interest rate tiers. Does the bank offer different interest rates based on your balance? Some banks reserve the highest rates for larger customers, while others cap the balances that can earn the best savings rates. For example, CIT Platinum Savings pays a higher rate on balances of $5,000 or more.
- Compounding. When your interest compounds, the accrued interest is added to your balance, and the new, higher balance then also earns interest. Ideally, your interest should compound at least monthly.
- Access to account. How easy is it to access your funds, and how long does it take? Some high-yield savings accounts also offer an ATM card to withdraw cash.
Frequently asked questions (FAQs)
What do you need to open a high-yield savings account?
To open a high-yield savings account, you'll need to provide your name, contact information, Social Security Number and date of birth. Additionally, you should be prepared to make an initial deposit to fund your account and start earning interest. It is wise to have existing bank account information so you can link your accounts for future transfers.
Are high-yield savings rates increasing?
Yes, high-yield savings rates have increased as the Federal Reserve has raised rates to combat inflation. Customers with money in their savings accounts benefit from these rising rates by earning more interest.
How do banks determine APYs for high-yield savings accounts?
Savings account interest rates are represented as annual percentage yield (APY) to factor in compounding interest. APY is based on the account's interest rate and the number of times the bank pays interest each year. The APY formula is 100 [(1 + Interest/Principal)(365/Days in term) - 1], but most people use a calculator instead of figuring it out by hand.
What is a good APY for a high-yield savings account?
A good APY depends on the current market, economic conditions and the available alternative options. In today's savings account interest rate environment, you should aim for an account that earns at least 3.50%, with the best savings accounts offering upwards of 4.5%. Many banks offer interest rates at this level or higher without charging monthly fees or requiring large balances.
Can you lose money in a high-yield savings account?
Bank accounts are insured for up to $250,000 per person at each bank. If you keep your balances below this level, you will not lose money, even if the bank goes out of business.
16 Successful Strategies to Make Money Online in 2023
The
world is becoming more virtual, increasing the number of ways you can
make money online. An online work-from-home situation offers a lot of
perks, including flexibility, a comfortable environment, and no
stressful commute. Whether you’re stuck in an office and ready to make a
change—or are just looking for a convenient way to make money on the
side—check out this list of options on how to make money online.
Ways to Making Money Online
Start a blog
If you love to write and have something useful or inspiring to say, consider starting a blog. A blog is a website where you regularly share your ideas or expertise with your readers. Before you start sharing your thoughts, you need to create a website. You can hire someone to build it for you or do it yourself. Website builders like SquareSpace make it really easy to put together a website on your own even with no previous experience. Once your site is up, it’s all about writing good content consistently and promoting your blog to attract readers and subscribers. If you want to monetize your blog, you need an audience. Then, you can use methods like affiliate marketing (earning income through product recommendations) and ads. You can also create your own product or service and sell it on your website.
Complete online surveys
If you’re looking to get rich, online surveys are not the way to do it. However, you can earn other rewards by sharing your opinions on different products or websites like Survey Junkie. By filling in surveys, you make some extra cash to spend on daily expenses such as gas and groceries, or you get gift cards for different stores and restaurants like Amazon, Walmart, and Target. Survey Junkie reports that it pays over $55,000 per day to its members. You can earn $100 per month via virtual points redeemable for e-Giftcards or cashouts via Paypal by completing three or more surveys a day. Do four or more and your potential haul increases to $130.
Start a side hustle
Having a side hustle or side gig in addition to a full-time job is pretty normal these days. Many people make a decent amount of money using side-hustle apps such as DoorDash or Uber. If you don’t want to go door-to-door delivering food—or don't have a car or the car insurance needed to become an Uber driver—you can look for other opportunities. With apps like TaskRabbit or Handy, you can get hired for random odd jobs in your neighborhood. If you want a side hustle that gets you outside and moving, check out the Rover app to find dog-walking clients.
Sell websites (or online businesses)
Got a website or online business with a decent following or perhaps a desirable domain name registered in your name? There’s money to be made from flipping websites. You just need to know where to look. Often the biggest hurdle is figuring out how much the website or business is worth and finding interested buyers. Websites are said to be worth two to three times the annual profit they generate, although that isn’t set in stone and can vary considerably. For a better idea, consider getting a professional valuation. Once you’ve settled on an asking price, look for an online marketplace that specializes in these types of transactions. It’s important to find somewhere safe that can attract as many potential bidders as possible. Flippa, which also offers a free website valuation tool, is considered one of the best.
Write a newsletter
An online newsletter is an email you send out to your subscribers to share information or promote a product or service. Let’s say you have a blog or a YouTube channel that’s all about yoga. In your newsletter, you can promote your favorite yoga wear using affiliate links. If your readers click on the link, it’s money in your pocket. You can also use your newsletter to promote your latest online yoga workshops, your one-on-one online yoga coaching sessions, and your comfy merch.
Create a Youtube channel
If you’ve always dreamed of being the next big YouTube star, now’s your chance. To make money on YouTube you need views and subscribers—lots of them. To qualify for the YouTube Partner Program, you need at least 1,000 subscribers with 4,000 public watch hours over the last 12 months or 1,000 subscribers with 10 million public short video views over the last 90 days. If you can meet these criteria, it’s possible to earn money. Using your YouTube Channel, you can try to profit from advertising revenue, channel membership, and selling merchandise in your YouTube store.
Write an ebook
Have you been sitting on a book idea for years? If so, why not try to self-publish and sell an ebook online? From financial advice and self-help to cookbooks and fiction, there is no end to what you can write about. If you have expertise on a subject and want to share your knowledge, an ebook is a great way to get the word out. There are many online ebook publishers, including Amazon Kindle, Smashwords, and Rakuten Kobo. Writing a book isn’t easy, and it takes a significant amount of effort on the front end. But once you hit publish, your ebook has passive-income potential.
Voice-over acting
For those with a beautiful, unique, or radio-announcer tone, have you considered voice-over work? Successful voice-over actors often have a background in acting (though it’s not necessary) and are able to do different characters or accents. Voice-over actors can find work narrating ebooks, online videos, or online ads. To get started, you will need a professional portfolio to share with potential clients. Voice-over acting also requires some initial investment. You’ll need to purchase a microphone and headphones, as well as voice recording and editing software.
Become a virtual assistant
A virtual assistant is a remote worker who offers administrative support to different clients. Successful virtual assistants are organized, reliable, and tech-savvy. The exact job tasks you will do as a virtual assistant can vary greatly based on your skill set as well as what your client wants. Some services you might offer include: responding to emails, scheduling client meetings and appointments, transcribing documents, and coordinating travel or bookkeeping. If you already have administrative experience, this can make it easier to break into the industry, but it's not necessary. You can start to look for clients using platforms like Belay, Upwork, and Zirtual.
Twitch streaming
Twitch lets gamers and other creators stream their content live. Similar to a YouTube channel, you make money by becoming a Twitch Partner or a Twitch Affiliate. There are several ways to monetize your content on Twitch, including subscriptions and “Bits.” Subscriptions (subs) allow your viewers to pay a monthly fee to support your channel. “Bits” are a virtual good that viewers can purchase to show their support and cheer on your content. As a Twitch Partner, you can also run ads on your streams and make money through sponsorship opportunities.
Test websites & apps
If you like being paid to take surveys, you might also enjoy earning money or rewards to test websites and apps. Instead of answering questions about specific products, you get to use websites and apps and provide your feedback. Similar to taking surveys, you aren’t going to earn enough to replace your full-time job. But it is a fun way to get paid for your perspective. If you’re interested, you can check out sites like UserTesting, UserPeek, and Userlytics. In addition to your computer, you will often need a microphone to participate.
Sell used items
Is your garage or hallway closet overflowing with stuff? Maybe it’s time to part with some of your old coats, toys, or kitchen appliances. Doing so not only frees up space in your household. It can also earn you extra money. With online sites like Facebook Marketplace, Nextdoor, and Craigslist, you can reach a wide audience of people perhaps interested in buying your unwanted items. It might not even be necessary to mail the stuff you sell. If you sign up on a local website, you can agree to meet the buyer in person.
Host on Airbnb
If you have a spare room or home, you can consider listing it on Airbnb. Decide whether you want to rent your space full-time, part-time, or just when you’re away traveling. While renting your space on Airbnb is considered a passive form of income, there is work involved. First, you need to ensure your space is ready to rent. This might include sprucing it up with new sheets, towels, and maybe a fresh coat of paint. There’s also the task of cleaning the space after guests leave. You can do this yourself or pay a cleaner. To get started, you need to sign up as a host with Airbnb and post your listing. While signing up is free, Airbnb will collect a percentage of your nightly rate. Prior to posting, it’s a good idea to confirm you’re allowed to rent your space. If you are part of a homeowners association, there might be rules against it.
Freelance writing
To become a freelance writer, you need to be a good writer, a strong researcher, and possess good organizational and time management skills. You don’t need a degree in journalism or English literature, though it doesn’t hurt. To start making money, you should have a portfolio with a few writing samples to share with potential clients. You can create a free writing portfolio on sites such as Contently and Muck Rack. To find clients, you can use online job boards. Three options: Upwork, Fiverr, and ProBlogger. However, there’s a lot of competition on these sites and the pay is often low. Once you have some experience, you can start to pitch clients on your own and increase your rates accordingly.
Dropshipping
Dropshipping allows you to sell a product online without having to keep stock. Using a drop shipping app, your customers can buy products from your online store that then ship directly from your supplier to your customer. To make money, you charge a slightly higher fee than your supplier and keep the profit. Before diving into the world of dropshipping, make sure you carefully research the product you want to sell and the wholesaler from which you plan to buy. To stay competitive, compare prices set by other buyers to determine what you should charge. There are a number of fraud issues around dropshipping, so proceed with caution.
Print on Demand
Print-on-demand (POD) lets you add your own designs to white-label products supplied by a third party on a per-order basis. Popular POD items include t-shirts, coffee mugs, tote bags, and socks. A benefit of POD is it eliminates the need to stock inventory, as everything is handled by the printing company. Many POD websites make it easy to set up your store and select products that you want to add your designs to. These companies will also print your designs and ship the products. To create your designs, you can use websites like Canva or you can hire someone else to create designs using sites like Fiverr or Upwork. To make money, you purchase your custom product for one price (let’s say $10), sell it for a markup ($22), and keep the profit.
Frequently Asked Questions (FAQs)
How can I make $300 a day online?
It’s possible to earn $300 a day online freelancing. Many experienced freelance writers, web developers, graphic designers, and so on earn $300 or more per day.
What is the fastest way to make money online?
If you need to make money fast, selling used items online is one option. You can use online marketplaces such as Facebook, Craigslist, or OfferUp to find local buyers and earn cash quickly.
How do I make money online from my own website?
There are a variety of ways to monetize your website. You can earn money through affiliate marketing, by creating and selling a product or service, or by setting up a paid newsletter.
How do I make money on Amazon?
Amazon offers several ways to make money. There are various selling options, including wholesale selling or retail arbitrage. You can also make money by self-publishing a book on Amazon Kindle, through its affiliate marketing program, or by delivering packages with Amazon Flex.
How do I make money on TikTok?
There are several ways to make money on TikTok. For example, if you have at least 10,000 followers and more than 100,000 views in the last 30 days, check out the TikTok Creator Fund. Those who meet these requirements, are at least 18 years old, and based in the U.S., U.K., France, Germany, Spain, or Italy can start to earn money for engaging content. You can also sell products to your viewers or offer your fans the chance to see additional content using a subscription model.
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