I move my money between 2 types of bank accounts to earn passive income, and it's netted me thousands of dollars

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• When liking rates connected savings accounts started dropping successful 2020, I looked for different options.
• I moved immoderate money into CDs to pursuit nan highest APY, past kept moving it arsenic rates changed.
• I've made a fewer 1000 dollars successful passive income pursuing this strategy.

As an entrepreneur, 1 of my biggest money goals is ever to find caller ways of bringing successful passive income. Over nan past fewer years, I've done this successful a fistful of different ways, from introducing caller products and services wrong my business to becoming an connection for brands I for illustration and earning money arsenic group bargain nan products I promote. 

Outside of my business, I've besides looked to find caller ways of bringing successful passive income from my financial portfolio. One of nan champion ways I've done that is by keeping my rate successful interest-generating savings accounts and CDs. 

But during nan early days of nan pandemic, erstwhile nan Federal Reserve lowered liking rates, nan annual percent yield kept dropping connected some these types of accounts. To get nan champion value, I decided to usage them strategically and move my money backmost and distant based connected which 1 offered nan champion liking complaint (provided location was nary punishment for doing so). 

Since 2020, I've shifted my money betwixt these 2 types of accounts astatine slightest erstwhile aliases doubly a twelvemonth to maximize my passive income-earning opportunities. I estimate that I've made a fewer 1000 dollars pinch this strategy since then. Here are 4 situations erstwhile I've moved my money.

1. When HYSA rates spell down 

Over nan past fewer years, nan liking complaint connected my high-yield savings account has fluctuated rather a bit. Whenever I spot that nan rates are higher pinch CDs, and nan position aren't longer than 18 months (since I want to make judge I person entree to nan money if I request it successful nan short term), I'll move a chunk of my rate into a CD.

Once, for example, my slope sent maine an connection for an 18-month CD pinch an liking complaint that was 1 afloat percent point higher than nan complaint offered astatine that constituent connected my high-yield savings account. I'm presently assessing really overmuch rate I'm consenting to put into this CD and not touch it for that clip play successful bid to return advantage of nan amended liking rate. 

2. When a CD matures 

At immoderate fixed clip during nan year, I person arsenic galore arsenic 3 CD accounts unfastened and successful use. Usually, astatine slightest erstwhile a year, nan money successful that CD matures, which intends I'm capable to determine whether to retreat nan rate aliases renew nan CD for nan aforesaid term, though nan liking complaint mightiness person changed (either higher aliases lower). 

At that time, if nan APY offered successful my high-yield savings relationship is higher, I'll move nan rate backmost into that relationship to gain compound interest and time off it location aliases hunt for different high-interest CD.

3. When an influx of rate tin beryllium near alone 

As an entrepreneur, my income often varies. I unrecorded connected a strict fund that helps maine negociate my spending and put speech money each period to thief maine scope my financial goals.

But erstwhile I get an influx of rate from a caller task aliases a merchandise I created that generates a batch of profit, I find myself pinch a chunk of money that I tin put speech and not touch for a while. That's erstwhile I'll hunt for a CD that offers nan highest liking complaint that I tin find, for nan clip play that I'm consenting to time off nan money untouched. 

If I'm not judge whether I tin support nan rate successful a longer-term CD, and don't want to consequence having to salary early withdrawal penalties, I'll hunt for a no-penalty CD. 

4. When I request to entree nan rate for different opportunities 

At slightest doubly a year, I put successful caller streams of passive income, whether that's putting nan money into REITs aliases creating a caller merchandise to waste to my assemblage (such arsenic an online course). 

Depending connected nan liking rates available, I mightiness person much rate successful CDs than successful my high-yield savings account. But erstwhile I cognize that successful nan adjacent early I'll request immoderate of nan rate to put successful different passive income streams, I make judge to move money retired of nan no-penalty CDs I person into my high-yield savings account.

This article was primitively published successful October 2022.