In today’s uncertain financial environment, simply letting your money sit in a traditional savings account is no longer enough. Learning how to earn interest on money monthly can help you take control of your finances and grow your wealth steadily over time. Whether you’re saving for retirement, planning for a large purchase, or simply looking to make your savings work harder for you, earning monthly interest is a smart, practical way to generate passive income.
By choosing the right investment options for earning monthly interest, you can ensure that your money is not only safe but also growing. Monthly interest provides a predictable income stream, helping you meet your financial goals faster, all while keeping your savings accessible and secure.
In this guide, we’ll explore the best ways to earn interest on money, showing you practical and low-risk strategies that you can start using today.
1. High-yield savings accounts
A high-yield savings account (HYSA) is a type of savings account that offers significantly higher interest rates than traditional savings accounts. These accounts are usually offered by online banks or financial institutions with lower overhead costs, which allows them to pass on better returns to their customers.
An HYSA functions just like a regular savings account. Your money is safe, accessible, and typically insured—but the key difference is that you earn more interest, typically on a monthly basis.
- How it works: When you deposit money into an HYSA, you’re essentially lending it to the bank, and in return, the bank pays you interest on your balance. The interest is calculated daily but credited to your account monthly. This means that the more money you have in your account, the more you’ll earn through monthly interest.
- Why choose this? It’s one of the safest ways to earn monthly interest on savings while maintaining full access to your funds. Your savings are usually protected by deposit insurance schemes (up to €100 000 in the EU), so you can earn interest on money safely. Plus, the monthly compounding effect means your interest starts earning interest too, accelerating your savings growth over time.
- Example: Suppose you open an HYSA with a €5 000 balance at a 3% annual interest rate. By the end of the year, you’ll earn around €12.50 per month in interest, assuming monthly compounding. Over time, this will grow as you continue adding to your savings. These small monthly interest payments can be reinvested into the account, maximizing your long-term gains.
2. Money market accounts
Money market accounts (MMAs) are a type of savings account that typically offers higher interest rates than regular savings accounts, making them a solid choice for anyone looking to earn monthly interest on savings. MMAs combine the security of savings accounts with some features of checking accounts, like the ability to write checks or use a debit card, though some restrictions apply. They are offered by banks and credit unions, and in most cases, your deposits are insured, adding an extra layer of security.
- How it works: MMAs invest your deposits in low-risk, short-term securities like government bonds and treasury bills. As a result, they can offer better interest rates than regular savings accounts while maintaining liquidity. Interest is calculated daily and credited monthly.
- Why choose this? MMAs are ideal for those looking to earn interest on money safely. They provide a reliable income stream with the added flexibility of easy access to your funds through limited check-writing or card transactions. Plus, your deposits are typically insured up to €100 000 in the EU, making this a low-risk investment option.
- Example: Imagine you deposit €10 000 into an MMA offering a 2.5% annual interest rate. Each month, you’ll receive about €20 in interest, while still being able to access your funds if needed. This makes MMAs an attractive option for those who need liquidity but still want to earn passive income with interest.
3. Bonds that pay monthly interest
If you’re looking for a reliable way to earn monthly interest on money, bonds that pay monthly interest can be a solid choice. Bonds are essentially loans that you give to governments or corporations, and in return, they pay you interest (known as a coupon) at regular intervals.
While many bonds pay interest quarterly or semi-annually, certain bonds, like some municipal bonds or corporate bonds, are structured to pay interest monthly.
- How it works: You purchase bonds from issuers like governments or corporations, and they commit to paying interest over the bond’s term. The key advantage of bonds that pay monthly interest is the regular cash flow, which can be especially useful if you’re relying on passive income to support financial goals.
- Why choose this? Bonds offer a dependable and lower-risk way to earn monthly returns. They’re particularly appealing to investors who prioritize security and predictability over high yields. Although the returns may not be as high as riskier investments, bonds provide stability and regular income.
- Example: Suppose you invest €15 000 in corporate bonds paying a 4% annual interest rate. This translates into roughly €50 per month in interest. Since many bonds have fixed terms, you can plan your income stream with precision, making bonds an excellent option for predictable monthly interest.
4. Certificates of deposit
Certificates of Deposit (CDs) are a secure way to lock in an interest rate for a set period, providing predictable returns. While most CDs pay interest quarterly or annually, some offer monthly interest payments, making them a convenient option for those looking to earn a steady income. What sets CDs apart from savings accounts is that they typically offer higher interest rates, but your money is locked in for a specific term.
- How it works: When you open a CD, you deposit a lump sum for a fixed term, ranging from a few months to several years. In return, the bank pays you interest at regular intervals—monthly, in some cases—until the CD matures. Once it matures, you receive your initial deposit back, along with the accumulated interest.
- Why choose this? CDs are a safe option for investors who don’t need immediate access to their funds and want to lock in a guaranteed rate of return. Unlike other investments, CDs are low-risk since your money is insured and the interest rate is fixed, protecting you from market fluctuations.
- Example: Let’s say you invest €20 000 in a 12-month CD with a 3% annual interest rate and monthly payouts. Over the course of the year, you would receive roughly €50 per month. CDs are especially suitable for investors who prefer predictable income and are comfortable with limited liquidity during the term.
5. Dividend-paying stocks
For those willing to venture into the stock market, dividend-paying stocks can be an effective way to earn passive income with interest. While most dividends are paid quarterly, some companies offer monthly dividends, making this a great option for investors who prefer regular payouts. Dividends are portions of a company’s profits distributed to shareholders, and selecting stocks that offer consistent dividends can provide you with a reliable income stream alongside potential stock price appreciation.
- How it works: When you invest in dividend-paying stocks, you’re buying shares of companies that regularly distribute a portion of their profits to shareholders. Some companies, particularly in sectors like real estate and utilities, offer monthly returns, making them ideal for those looking for the best investments for monthly returns. You can either collect these dividends as cash or reinvest them to purchase more shares, compounding your gains over time.
- Why choose this? Dividend-paying stocks offer both income and growth potential. In addition to the dividends you receive, there’s the possibility for capital gains if the stock price increases. This makes dividend stocks a versatile option for investors looking for a mix of monthly income and long-term wealth building. However, it’s important to note that dividend payments can fluctuate based on the company’s performance.
- Example: Imagine you invest €10 000 in a portfolio of monthly dividend stocks with an average yield of 4%. This could generate approximately €33 per month in dividends, which can either be withdrawn or reinvested to accelerate your growth. Dividend-paying stocks offer the potential for both steady income and market gains, making them a flexible investment option.
6. Real estate crowdfunding
Real estate crowdfunding is one of the best ways to earn interest on money through real estate investments without the hassle of direct ownership. By investing small amounts via online platforms, you can diversify your portfolio across multiple projects—such as rental properties and commercial developments—and earn monthly interest on savings through rental income or property appreciation. This method opens up the real estate market to investors with varying levels of capital, offering an accessible and efficient path to passive income.
- How it works: Through crowdfunding platforms, you can invest in different real estate projects and receive a portion of the income they generate. These platforms distribute monthly returns, typically in the form of rent payments or interest, providing investors with regular cash flow. With real estate being a stable asset class, it’s an attractive investment option for earning monthly interest.
- Why choose this? Real estate crowdfunding offers a flexible and hands-off way to participate in the real estate market. By spreading your investments across multiple projects, you lower risk while enjoying consistent income. For those seeking how to get monthly interest on money, this approach delivers reliable returns without needing to manage properties directly.
- Example: Imagine you invest €5 000 in a real estate crowdfunding platform, targeting properties that yield a 6% annual return. With this investment, you could earn around €25 per month in rental income. This strategy allows you to benefit from real estate returns without the complexities of direct property management, making it ideal for hands-off investors.
7. Fixed-income investments for monthly interest
Fixed-income investments are one of the most reliable investment options for earning monthly interest. These include products like bonds that pay monthly interest, Treasury bills, and corporate notes. Fixed-income securities provide regular interest payments at set intervals, making them ideal for investors looking for stability and how to earn passive income with interest.
- How it works: When you invest in fixed-income securities, you are essentially lending money to an issuer (such as a government or corporation) in exchange for regular interest payments. Many fixed-income investments for monthly interest are designed to provide steady returns, making them a popular choice for conservative investors.
- Why choose this? Fixed-income investments offer a low-risk way to earn interest on money safely, with predictable returns. If you’re seeking a dependable source of monthly interest, these investments are often considered some of the best investments for monthly returns.
- Example: Let’s say you invest €20 000 in corporate notes with an annual yield of 4%. This could generate approximately €67 per month in interest. Fixed-income investments like these are excellent for investors who want consistent income without exposure to volatile markets, offering a stable route to wealth accumulation.
Get started with Mintos today
Investing doesn’t have to be complicated or time-consuming. Platforms like Mintos offer a simple way to diversify your portfolio and start earning monthly interest. By investing in loans, you have the potential to generate passive income with regular interest payments, all while maintaining control over the risk level that suits you best. Mintos provides access to a wide range of loans from across the globe, allowing you to diversify your investments and maximize returns without the hassle of managing everything yourself.
It’s never too late to start investing. Whether you’re just beginning your financial journey or looking for new ways to grow your wealth, starting today is always better than waiting. With Mintos, you can take the first step towards achieving your financial goals by creating a diversified portfolio that works for you every month.
Ready to start earning monthly interest? Open an account with Mintos and begin building your portfolio today. Because when it comes to your financial future, the best time to start is now.
Want to know more?
Disclaimer:
This is a marketing communication and in no way should be viewed as investment research, investment advice, or recommendation to invest. The value of your investment can go up as well as down. Past performance of financial instruments does not guarantee future returns. Investing in financial instruments involves risk; before investing, consider your knowledge, experience, financial situation, and investment objectives
