Slick’s Journey to Build a Passive Income: High Interest Savings Account

person holding coin

Based on my previous post, I have identified three methods of building a passive income. Today I will focus on one of these methods; “High Interest Saving Accounts”

High Interest Savings Account is exactly like it sounds. In return for depositing your paycheque into a saving account you can receive up to 1.9% in interest every month. That sounds easy enough and in reality it is. Here are my top 5 tips in how to use this method effectively

1. Focus on online banks and credit unions

These are the financial institutions most likely to give the highest interest rates

2. Be aware of promotions that can offer as much as 3% a year

Banks especially online banks (Think ING or Canada Tire Financials) will often give out 3months to one year promotions that offer higher than normal interest rates in order to entice Customers

3. Keep your high interest saving account in a separate bank from your other banking accounts

Out of sight out of mind. You won’t have to worry about withdrawing from your saving account

4. Add autopay to your checking account

Autopay will allow you to automatically transfer a minimum amount to your high interest saving account each month. By doing this you will not have to worry about manually contributing each month

5. Always read the fine print

Make sure to always read the fine print before signing up for a promotion or opening up a bank account


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