Interest rate options enable investors to hedge, speculate on, or otherwise manage their exposure to interest rates. These financial derivatives are available as both puts and calls, and traded on major options exchanges.
Interest rates in the U.S. fluctuate continuously, with the Federal Reserve being a key driver, but not the only one. To mitigate these fluctuations, and also to profit from them, professional money managers turn to interest rates options as a source for risk management.
Interest rate options are sold on major options exchanges as standardized puts and calls, as the two main types of contracts are called in options terminology. Similar to puts and calls on equity securities, interest rate options represent directional bets on the value of an underlying asset.
The value of interest rate options is tied to yields on interest-rate-linked assets, typically Eurodollars and U.S. Treasuries of various maturities.
Buyers of interest rate options can buy exposure to various portions of the yield curve, for example, the 2-year, 5-year, and 10-year treasuries are standardized terms commonly sold on the CME Group exchanges. Professional money managers may use puts or calls at any given maturity to express their views on the future direction and volatility of interest rates.
How Interest Rate Options Work
Interest rate options afford the buyer the right to receive payment based on the spread between the yield of the underlying security on the expiration date and the original strike rate of the option, net of fees.
Interest rate options in the United States feature “European style” options exercise terms, which means they can only be exercised on the expiration date.
This contrasts with equity options, which more often contain “American style” exercise terms. This means they can be exercised at any time before they expire.
Buyers of interest rate options pay a “premium” per the terms of the options contract, which is the price paid by the buyer. Options pricing can be complex, to say the least, and to profit on a trade the buyer of the option will need interest rates to move in their favor enough to cover the cost of the option’s premium before they can profit.
In the event that interest rates don’t move in the option holder’s favor enough to overcome the strike rate, the option will expire worthless and the option holder incurs the total loss of their premium.
We’ll cover how this dynamic plays out with respect to both interest rate calls and puts.
How Do Interest Rate Call Options Work
Buyers of interest rate call options seek to benefit from rising interest rates. Should the yield on the underlying security close above its strike rate on the expiration date, the owner of an interest rate call option will receive a cash payout. This payout will be the difference between the option value at maturity and its strike.
Note that interest options are cash-settled. Unlike equity options, no exercise is required. If the rate is higher than the strike rate, the holder is paid the difference.
Interest rate call options, much like equity call options, give the buyer unlimited upside exposure to rising yields.
Holders of interest rate call options bear the risk that the option might expire out-of-the-money should interest rates remain beneath the strike by the expiration date. In this case, the maximum loss the owner of an interest rate call option can expect is limited to the premium paid.
How Do Interest Rate Put Options Work
In contrast, buyers of interest rate put options seek to benefit from falling interest rates. Interest rate puts give the put holder the right to receive payment based on the difference between the strike rate and the yield on the underlying security at expiration.
In this case, the strike rate is typically the maximum possible gain that a put holder may receive.
Holders of interest rate put options bear the risk that the option might expire worthless (out-of-the-money) if interest rates rise above the strike by the expiration date. In this case, the maximum loss the owner of an interest rate put option will incur is limited to the premium paid.
What Are the Risks of Trading Interest Rate Options?
Trading interest rate options involves enormous risk for any trader who either, 1) doesn’t understand the basic drivers of options valuation and interest rates, or 2) doesn’t understand how to structure their options trade properly to cap risk exposure. The corresponding leverage on options trades can result in enormous losses if improperly managed.
Traders will need to manage a number of key risks, and they may want to consider different strategies for trading options, when it comes to buying interest rate puts and calls. This includes “market risk,” which is the risk of price movements caused by any macroeconomic factor that affects the financial markets. It also includes “interest rate risk,” which is the risk that changes in interest rates might erode the value of one’s holdings.
Finally, user-friendly options trading is here.*
Trade options with SoFi Invest on an easy-to-use, intuitively designed online platform.
Interest Rate Option Example
As an example, an investor seeking to hedge (or protect) their portfolio against rising interest rates can choose to buy an interest rate call option on a 10-year Treasury bond, expiring in 2 months at a strike of $50.00.
Strikes on interest rate options are a pseudo-conversion where the interest rate is multiplied by 10x and denominated in dollars. Therefore a 5.0% rate converts to a strike price of $50.
If the option’s premium is quoted at $0.50, then buying a single interest rate call option would cost you a $50 total premium, as each interest rate option affords you exposure to 100 shares of the underlying.
If yields rise for the next 2 months until the option expires, the underlying might be worth $55 by the time it’s exercised.
In this instance, you can calculate your net profit using the following equation:
(Underlying rate at expiry – Strike Price) X 100 – Contract Premium = Profit
($55 – $50) X 100 ) – $50 = Profit
$5 X 100 – $50 = Profit
$500 – $50 = $450 net profit
Remember that each option contract grants exposure to 100 units of the underlying, while options premiums are quoted for a single unit of the underlying. Remember also to use the actual total contract premium paid, as well as introduce a multiplier of 100, when calculating your net profit.
The Takeaway
Interest rate options can be of interest to investors who understand the underlying drivers of these securities. They essentially provide direct exposure to interest rates, on a leveraged basis, at a relatively competitive cost.
When employed strategically, interest rate options enable investors to enhance their upside or mitigate their downside in a volatile rate environment.
If you’re ready to try your hand at options trading, You can set up an Active Invest account and trade options online from the SoFi mobile app or through the web platform.
And if you have any questions, SoFi offers educational resources about options to learn more. SoFi doesn’t charge commissions, and members have access to complimentary financial advice from a professional.
With SoFi, user-friendly options trading is finally here.
FAQ
What are interest rate future options?
Interest rate future options are futures contracts which derive their value from an underlying interest-bearing security. The buyer of an interest rate futures option (the “long position”) purchases the right to receive the interest rate payment in the contract, while the seller (the “short position”) is obligated to pay the interest rate on the underlying contract.
In either case, interest rate future options enable both buyer and seller to lock in the price on an interest-bearing security, for future delivery, which offers both parties some level of price certainty.
What is an interest rate swaption?
Interest rate swaptions represent the right, but not the obligation, to enter an interest rate swap agreement on an agreed-upon date.
In exchange for the contract premium, the buyer of an interest rate swaption can choose whether they want to be a fixed-rate payer (“payer swaption”), or fixed-rate receiver (“receiver swaption”) on the underlying swap, with the counterparty taking the variable rate side of the transaction.
Unlike standard interest rate options, swaptions are over-the-counter products, which means they allow for more customized terms, so there’s more variety when it comes to expiration, the style of options exercise, and the exact notional amount.
What is interest rate risk?
Interest rate risk is the exposure of an investment to fluctuating interest rates in the open market. Interest rates can change on a daily basis according to any number of market influences, including investor expectations, actions, or even statements made by central banks.
If interest rates rise on any given day, that shift will typically erode the value of bonds and most-other fixed income securities. Conversely, if interest rates were to fall, the market value of outstanding fixed-income securities will typically increase instead. Interest rate risk represents your investment exposure to these fluctuations in rates.
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In Best Low-Risk Investments for 2023, I provided a comprehensive list of low-risk investments with predictable returns. But it’s precisely because those returns are low-risk that they also provide relatively low returns.
In this article, we’re going to look at high-yield investments, many of which involve a higher degree of risk but are also likely to provide higher returns.
True enough, low-risk investments are the right investment solution for anyone who’s looking to preserve capital and still earn some income.
But if you’re more interested in the income side of an investment, accepting a bit of risk can produce significantly higher returns. And at the same time, these investments will generally be less risky than growth stocks and other high-risk/high-reward investments.
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Determine How Much Risk You’re Willing to Take On
The risk we’re talking about with these high-yield investments is the potential for you to lose money. As is true when investing in any asset, you need to begin by determining how much you’re willing to risk in the pursuit of higher returns.
Chasing “high-yield returns” will make you broke if you don’t have clear financial goals you’re working towards.
I’m going to present a large number of high-yield investments, each with its own degree of risk. The purpose is to help you evaluate the risk/reward potential of these investments when selecting the ones that will be right for you.
If you’re looking for investments that are completely safe, you should favor one or more of the highly liquid, low-yield vehicles covered in Best Low-Risk Investments for 2023. In this article, we’re going to be going for something a little bit different. As such, please note that this is not in any way a blanket recommendation of any particular investment.
Best High-Yield Investments for 2023
Table of Contents
Below is my list of the 18 best high-yield investments for 2023. They’re not ranked or listed in order of importance. That’s because each is a unique investment class that you will need to carefully evaluate for suitability within your own portfolio.
Be sure that any investment you do choose will be likely to provide the return you expect at an acceptable risk level for your own personal risk tolerance.
1. Treasury Inflation-Protected Securities (TIPS)
Let’s start with this one, if only because it’s on just about every list of high-yield investments, especially in the current environment of rising inflation. It may not actually be the best high-yield investment, but it does have its virtues and shouldn’t be overlooked.
Basically, TIPS are securities issued by the U.S. Treasury that are designed to accommodate inflation. They do pay regular interest, though it’s typically lower than the rate paid on ordinary Treasury securities of similar terms. The bonds are available with a minimum investment of $100, in terms of five, 10, and 30 years. And since they’re fully backed by the U.S. government, you are assured of receiving the full principal value if you hold a security until maturity.
But the real benefit—and the primary advantage—of these securities is the inflation principal additions. Each year, the Treasury will add an amount to the bond principal that’s commensurate with changes in the Consumer Price Index (CPI).
Fortunately, while the principal will be added when the CPI rises (as it nearly always does), none will be deducted if the index goes negative.
You can purchase TIPS through the U.S. Treasury’s investment portal, Treasury Direct. You can also hold the securities as well as redeem them on the same platform. There are no commissions or fees when buying securities.
On the downside, TIPS are purely a play on inflation since the base rates are fairly low. And while the principal additions will keep you even with inflation, you should know that they are taxable in the year received.
Still, TIPS are an excellent low-risk, high-yield investment during times of rising inflation—like now.
2. I Bonds
If you’re looking for a true low-risk, high-yield investment, look no further than Series I bonds. With the current surge in inflation, these bonds have become incredibly popular, though they are limited.
I bonds are currently paying 6.89%. They can be purchased electronically in denominations as little as $25. However, you are limited to purchasing no more than $10,000 in I bonds per calendar year. Since they are issued by the U.S. Treasury, they’re fully protected by the U.S. government. You can purchase them through the Treasury Department’s investment portal, TreasuryDirect.gov.
“The cash in my savings account is on fire,” groans Scott Lieberman, Founder of Touchdown Money. “Inflation has my money in flames, each month incinerating more and more. To defend against this, I purchased an I bond. When I decide to get my money back, the I bond will have been protected against inflation by being worth more than what I bought it for. I highly recommend getting yourself a super safe Series I bond with money you can stash away for at least one year.”
You may not be able to put your entire bond portfolio into Series I bonds. But just a small investment, at nearly 10%, can increase the overall return on your bond allocation.
3. Corporate Bonds
The average rate of return on a bank savings account is 0.33%. The average rate on a money market account is 0.09%, and 0.25% on a 12-month CD.
Now, there are some banks paying higher rates, but generally only in the 1%-plus range.
If you want higher returns on your fixed income portfolio, and you’re willing to accept a moderate level of risk, you can invest in corporate bonds. Not only do they pay higher rates than banks, but you can lock in those higher rates for many years.
For example, the average current yield on a AAA-rated corporate bond is 4.55%. Now that’s the rate for AAA bonds, which are the highest-rated securities. You can get even higher rates on bonds with lower ratings, which we will cover in the next section.
Corporate bonds sell in face amounts of $1,000, though the price may be higher or lower depending on where interest rates are. If you choose to buy individual corporate bonds, expect to buy them in lots of ten. That means you’ll likely need to invest $10,000 in a single issue. Brokers will typically charge a small per-bond fee on purchase and sale.
An alternative may be to take advantage of corporate bond funds. That will give you an opportunity to invest in a portfolio of bonds for as little as the price of one share of an ETF. And because they are ETFs, they can usually be bought and sold commission free.
You can typically purchase corporate bonds and bond funds through popular stock brokers, like Zacks Trade, TD Ameritrade.
Corporate Bond Risk
Be aware that the value of corporate bonds, particularly those with maturities greater than 10 years, can fall if interest rates rise. Conversely, the value of the bonds can rise if interest rates fall.
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4. High-Yield Bonds
In the previous section we talked about how interest rates on corporate bonds vary based on each bond issue’s rating. A AAA bond, being the safest, has the lowest yield. But a riskier bond, such as one rated BBB, will provide a higher rate of return.
If you’re looking to earn higher interest than you can with investment-grade corporate bonds, you can get those returns with so-called high-yield bonds. Because they have a lower rating, they pay higher interest, sometimes much higher.
The average yield on high-yield bonds is 8.29%. But that’s just an average. The yield on a bond rated B will be higher than one rated BB.
You should also be aware that, in addition to potential market value declines due to rising interest rates, high-yield bonds are more likely to default than investment-grade bonds. That’s why they pay higher interest rates. (They used to call these bonds “junk bonds,” but that kind of description is a marketing disaster.) Because of those twin risks, junk bonds should occupy only a small corner of your fixed-income portfolio.
High Yield Bond Risk
In a rapidly rising interest rate environment, high-yield bonds are more likely to default.
High-yield bonds can be purchased under similar terms and in the same places where you can trade corporate bonds. There are also ETFs that specialize in high-yield bonds and will be a better choice for most investors, since they will include diversification across many different bond issues.
5. Municipal Bonds
Just as corporations and the U.S. Treasury issue bonds, so do state and local governments. These are referred to as municipal bonds. They work much like other bond types, particularly corporates. They can be purchased in similar denominations through online brokers.
The main advantage enjoyed by municipal bonds is their tax-exempt status for federal income tax purposes. And if you purchase a municipal bond issued by your home state, or a municipality within that state, the interest will also be tax-exempt for state income tax purposes.
That makes municipal bonds an excellent source of tax-exempt income in a nonretirement account. (Because retirement accounts are tax-sheltered, it makes little sense to include municipal bonds in those accounts.)
Municipal bond rates are currently hovering just above 3% for AAA-rated bonds. And while that’s an impressive return by itself, it masks an even higher yield.
Because of their tax-exempt status, the effective yield on municipal bonds will be higher than the note rate. For example, if your combined federal and state marginal income tax rates are 25%, the effective yield on a municipal bond paying 3% will be 4%. That gives an effective rate comparable with AAA-rated corporate bonds.
Municipal bonds, like other bonds, are subject to market value fluctuations due to interest rate changes. And while it’s rare, there have been occasional defaults on these bonds.
Like corporate bonds, municipal bonds carry ratings that affect the interest rates they pay. You can investigate bond ratings through sources like Standard & Poor’s, Moody’s, and Fitch.
Fund
Symbol
Type
Current Yield
5 Average Annual Return
Vanguard Inflation-Protected Securities Fund
VIPSX
TIPS
0.06%
3.02%
SPDR® Portfolio Interm Term Corp Bond ETF
SPIB
Corporate
4.38%
1.44%
iShares Interest Rate Hedged High Yield Bond ETF
HYGH
High-Yield
5.19%
2.02%
Invesco VRDO Tax-Free ETF (PVI)
PVI
Municipal
0.53%
0.56%
6. Longer Term Certificates of Deposit (CDs)
This is another investment that falls under the low risk/relatively high return classification. As interest rates have risen in recent months, rates have crept up on certificates of deposit. Unlike just one year ago, CDs now merit consideration.
But the key is to invest in certificates with longer terms.
“Another lower-risk option is to consider a Certificate of Deposit (CD),” advises Lance C. Steiner, CFP at Buckingham Advisors. “Banks, credit unions, and many other financial institutions offer CDs with maturities ranging from 6 months to 60 months. Currently, a 6-month CD may pay between 0.75% and 1.25% where a 24-month CD may pay between 2.20% and 3.00%. We suggest considering a short-term ladder since interest rates are expected to continue rising.” (Stated interest rates for the high-yield savings and CDs were obtained at bankrate.com.)
Most banks offer certificates of deposit with terms as long as five years. Those typically have the highest yields.
But the longer term does involve at least a moderate level of risk. If you invest in a CD for five years that’s currently paying 3%, the risk is that interest rates will continue rising. If they do, you’ll miss out on the higher returns available on newer certificates. But the risk is still low overall since the bank guarantees to repay 100% of your principle upon certificate maturity.
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7. Peer-to-Peer (P2P) Lending
Do you know how banks borrow from you—at 1% interest—then loan the same money to your neighbor at rates sometimes as high as 20%? It’s quite a racket, and a profitable one at that.
But do you also know that you have the same opportunity as a bank? It’s an investing process known as peer-to-peer lending, or P2P for short.
P2P lending essentially eliminates the bank. As an investor, you’ll provide the funds for borrowers on a P2P platform. Most of these loans will be in the form of personal loans for a variety of purposes. But some can also be business loans, medical loans, and for other more specific purposes.
As an investor/lender, you get to keep more of the interest rate return on those loans. You can invest easily through online P2P platforms.
One popular example is Prosper. They offer primarily personal loans in amounts ranging between $2,000 and $40,000. You can invest in small slivers of these loans, referred to as “notes.” Notes can be purchased for as little as $25.
That small denomination will make it possible to diversify your investment across many different loans. You can even choose the loans you will invest in based on borrower credit scores, income, loan terms, and purposes.
Prosper, which has managed $20 billion in P2P loans since 2005, claims a historical average return of 5.7%. That’s a high rate of return on what is essentially a fixed-income investment. But that’s because there exists the possibility of loss due to borrower default.
However, you can minimize the likelihood of default by carefully choosing borrower loan quality. That means focusing on borrowers with higher credit scores, incomes, and more conservative loan purposes (like debt consolidation).
8. Real Estate Investment Trusts (REITs)
REITs are an excellent way to participate in real estate investment, and the return it provides, without large amounts of capital or the need to manage properties. They’re publicly traded, closed-end investment funds that can be bought and sold on major stock exchanges. They invest primarily in commercial real estate, like office buildings, retail space, and large apartment complexes.
If you’re planning to invest in a REIT, you should be aware that there are three different types.
“Equity REITs purchase commercial, industrial, or residential real estate properties,” reports Robert R. Johnson, PhD, CFA, CAIA, Professor of Finance, Heider College of Business, Creighton University and co-author of several books, including The Tools and Techniques Of Investment Planning, Strategic Value Investing and Investment Banking for Dummies. “Income is derived primarily from the rental on the properties, as well as from the sale of properties that have increased in value. Mortgage REITs invest in property mortgages. The income is primarily from the interest they earn on the mortgage loans. Hybrid REITs invest both directly in property and in mortgages on properties.”
Johnson also cautions:
“Investors should understand that equity REITs are more like stocks and mortgage REITs are more like bonds. Hybrid REITs are like a mix of stocks and bonds.”
Mortgage REITs, in particular, are an excellent way to earn steady dividend income without being closely tied to the stock market.
Examples of specific REITs are listed in the table below (source: Kiplinger):
REIT
Equity or Mortgage
Property Type
Dividend Yield
12 Month Return
Rexford Industrial Realty
REXR
Industrial warehouse space
2.02%
2.21%
Sun Communities
SUI
Manufactured housing, RVs, resorts, marinas
2.19%
-14.71%
American Tower
AMT
Multi-tenant cell towers
2.13%
-9.00%
Prologis
PLD
Industrial real estate
2.49%
-0.77%
Camden Property Trust
CPT
Apartment complexes
2.77%
-7.74%
Alexandria Real Estate Equities
ARE
Research Properties
3.14%
-23.72%
Digital Realty Trust
DLR
Data centers
3.83%
-17.72%
9. Real Estate Crowdfunding
If you prefer direct investment in a property of your choice, rather than a portfolio, you can invest in real estate crowdfunding. You invest your money, but management of the property will be handled by professionals. With real estate crowdfunding, you can pick out individual properties, or invest in nonpublic REITs that invest in very specific portfolios.
One of the best examples of real estate crowdfunding is Fundrise. That’s because you can invest with as little as $500 or create a customized portfolio with no more than $1,000. Not only does Fundrise charge low fees, but they also have multiple investment options. You can start small in managed investments, and eventually trade up to investing in individual deals.
One thing to be aware of with real estate crowdfunding is that many require accredited investor status. That means being high income, high net worth, or both. If you are an accredited investor, you’ll have many more choices in the real estate crowdfunding space.
If you are not an accredited investor, that doesn’t mean you’ll be prevented from investing in this asset class. Part of the reason why Fundrise is so popular is that they don’t require accredited investor status. There are other real estate crowdfunding platforms that do the same.
Just be careful if you want to invest in real estate through real estate crowdfunding platforms. You will be expected to tie your money up for several years, and early redemption is often not possible. And like most investments, there is the possibility of losing some or all your investment principal.
Low minimum investment – $10
Diversified real estate portfolio
Portfolio Transparency
10. Physical Real Estate
We’ve talked about investing in real estate through REITs and real estate crowdfunding. But you can also invest directly in physical property, including residential property or even commercial.
Owning real estate outright means you have complete control over the investment. And since real estate is a large-dollar investment, the potential returns are also large.
For starters, average annual returns on real estate are impressive. They’re even comparable to stocks. Residential real estate has generated average returns of 10.6%, while commercial property has returned an average of 9.5%.
Next, real estate has the potential to generate income from two directions, from rental income and capital gains. But because of high property values in many markets around the country, it will be difficult to purchase real estate that will produce a positive cash flow, at least in the first few years.
Generally speaking, capital gains are where the richest returns come from. Property purchased today could double or even triple in 20 years, creating a huge windfall. And this will be a long-term capital gain, to get the benefit of a lower tax bite.
Finally, there’s the leverage factor. You can typically purchase an investment property with a 20% down payment. That means you can purchase a $500,000 property with $100,000 out-of-pocket.
By calculating your capital gains on your upfront investment, the returns are truly staggering. If the $500,000 property doubles to $1 million in 20 years, the $500,000 profit generated will produce a 500% gain on your $100,000 investment.
On the negative side, real estate is certainly a very long-term investment. It also comes with high transaction fees, often as high as 10% of the sale price. And not only will it require a large down payment up front, but also substantial investment of time managing the property.
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11. High Dividend Stocks
“The best high-yield investment is dividend stocks,” declares Harry Turner, Founder at The Sovereign Investor. “While there is no guaranteed return with stocks, over the long term stocks have outperformed other investments such as bonds and real estate. Among stocks, dividend-paying stocks have outperformed non-dividend paying stocks by more than 2 percentage points per year on average over the last century. In addition, dividend stocks tend to be less volatile than non-dividend paying stocks, meaning they are less likely to lose value in downturns.”
You can certainly invest in individual stocks that pay high dividends. But a less risky way to do it, and one that will avoid individual stock selection, is to invest through a fund.
One of the most popular is the ProShares S&P 500 Dividend Aristocrat ETF (NOBL). It has provided a return of 1.67% in the 12 months ending May 31, and an average of 12.33% per year since the fund began in October 2013. The fund currently has a 1.92% dividend yield.
The so-called Dividend Aristocrats are popular because they represent 60+ S&P 500 companies, with a history of increasing their dividends for at least the past 25 years.
“Dividend Stocks are an excellent way to earn some quality yield on your investments while simultaneously keeping inflation at bay,” advises Lyle Solomon, Principal Attorney at Oak View Law Group, one of the largest law firms in America. “Dividends are usually paid out by well-established and successful companies that no longer need to reinvest all of the profits back into the business.”
It gets better. “These companies and their stocks are safer to invest in owing to their stature, large customer base, and hold over the markets,” adds Solomon. “The best part about dividend stocks is that many of these companies increase dividends year on year.”
The table below shows some popular dividend-paying stocks. Each is a so-called “Dividend Aristocrat”, which means it’s part of the S&P 500 and has increased its dividend in each of at least the past 25 years.
Company
Symbol
Dividend
Dividend Yield
AbbVie
ABBV
$5.64
3.80%
Armcor PLC
AMCR
$0.48
3.81%
Chevron
CVX
$5.68
3.94%
ExxonMobil
XOM
$3.52
4.04%
IBM
IBM
$6.60
5.15%
Realty Income Corp
O
$2.97
4.16%
Walgreen Boots Alliance
WBA
$1.92
4.97%
12. Preferred Stocks
Preferred stocks are a very specific type of dividend stock. Just like common stock, preferred stock represents an interest in a publicly traded company. They’re often thought of as something of a hybrid between stocks and bonds because they contain elements of both.
Though common stocks can pay dividends, they don’t always. Preferred stocks on the other hand, always pay dividends. Those dividends can be either a fixed amount or based on a variable dividend formula. For example, a company can base the dividend payout on a recognized index, like the LIBOR (London Inter-Bank Offered Rate). The percentage of dividend payout will then change as the index rate does.
Preferred stocks have two major advantages over common stock. First, as “preferred” securities, they have a priority on dividend payments. A company is required to pay their preferred shareholders dividends ahead of common stockholders. Second, preferred stocks have higher dividend yields than common stocks in the same company.
You can purchase preferred stock through online brokers, some of which are listed under “Growth Stocks” below.
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Preferred Stock Caveats
The disadvantage of preferred stocks is that they don’t entitle the holder to vote in corporate elections. But some preferred stocks offer a conversion option. You can exchange your preferred shares for a specific number of common stock shares in the company. Since the conversion will likely be exercised when the price of the common shares takes a big jump, there’s the potential for large capital gains—in addition to the higher dividend.
Be aware that preferred stocks can also be callable. That means the company can authorize the repurchase of the stock at its discretion. Most will likely do that at a time when interest rates are falling, and they no longer want to pay a higher dividend on the preferred stock.
Preferred stock may also have a maturity date, which is typically 30–40 years after its original issuance. The company will typically redeem the shares at the original issue price, eliminating the possibility of capital gains.
Not all companies issue preferred stock. If you choose this investment, be sure it’s with a company that’s well-established and has strong financials. You should also pay close attention to the details of the issuance, including and especially any callability provisions, dividend formulas, and maturity dates.
13. Growth Stocks
This sector is likely the highest risk investment on this list. But it also may be the one with the highest yield, at least over the long term. That’s why we’re including it on this list.
Based on the S&P 500 index, stocks have returned an average of 10% per year for the past 50 years. But it is important to realize that’s only an average. The market may rise 40% one year, then fall 20% the next. To be successful with this investment, you must be committed for the long haul, up to and including several decades.
And because of the potential wide swings, growth stocks are not recommended for funds that will be needed within the next few years. In general, growth stocks work best for retirement plans. That’s where they’ll have the necessary decades to build and compound.
Since most of the return on growth stocks is from capital gains, you’ll get the benefit of lower long-term capital gains tax rates, at least with securities held in a taxable account. (The better news is capital gains on investments held in retirement accounts are tax-deferred until retirement.)
You can choose to invest in individual stocks, but that’s a fairly high-maintenance undertaking. A better way may be to simply invest in ETFs tied to popular indexes. For example, ETFs based on the S&P 500 are very popular among investors.
You can purchase growth stocks and growth stock ETFs commission free with brokers like M1 Finance, Zacks Trade, Wealthsimple.
14. Annuities
Annuities are something like creating your own private pension. It’s an investment contract you take with an insurance company, in which you invest a certain amount of money in exchange for a specific income stream. They can be an excellent source of high yields because the return is locked in by the contract.
Annuities come in many different varieties. Two major classifications are immediate and deferred annuities. As the name implies, immediate annuities begin paying an income stream shortly after the contract begins.
Deferred annuities work something like retirement plans. You may deposit a fixed amount of money with the insurance company upfront or make regular installments. In either case, income payments will begin at a specified point in the future.
With deferred annuities, the income earned within the plan is tax-deferred and paid upon withdrawal. But unlike retirement accounts, annuity contributions are not tax-deductible. Investment returns can either be fixed-rate or variable-rate, depending on the specific annuity setup.
While annuities are an excellent idea and concept, the wide variety of plans as well as the many insurance companies and agents offering them, make them a potential minefield. For example, many annuities are riddled with high fees and are subject to limited withdrawal options.
Because they contain so many moving parts, any annuity contracts you plan to enter into should be carefully reviewed. Pay close attention to all the details, including the small ones. It is, after all, a contract, and therefore legally binding. For that reason, you may want to have a potential annuity reviewed by an attorney before finalizing the deal.
15. Alternative Investments
Alternative investments cover a lot of territory. Examples include precious metals, commodities, private equity, art and collectibles, and digital assets. These fall more in the category of high risk/potential high reward, and you should proceed very carefully and with only the smallest slice of your portfolio.
To simplify the process of selecting alternative assets, you can invest through platforms such as Yieldstreet. With a single cash investment, you can invest in multiple alternatives.
“Investors can purchase real estate directly on Yieldstreet, through fractionalized investments in single deals,” offers Milind Mehere, Founder & Chief Executive Officer at Yieldstreet. “Investors can access private equity and private credit at high minimums by investing in a private market fund (think Blackstone or KKR, for instance). On Yieldstreet, they can have access to third-party funds at a fraction of the previously required minimums. Yieldstreet also offers venture capital (fractionalized) exposure directly. Buying a piece of blue-chip art can be expensive, and prohibitive for most investors, which is why Yieldstreet offers fractionalized assets to diversified art portfolios.”
Yieldstreet also provides access to digital asset investments, with the benefit of allocating to established professional funds, such as Pantera or Osprey Fund. The platform does not currently offer commodities but plans to do so in the future.
Access to wide array of alternative asset classes
Access to ultra-wealthy investments
Can invest for income or growth
Learn More Now
Alternative investments largely require thinking out-of-the-box. Some of the best investment opportunities are also the most unusual.
“The price of meat continues to rise, while agriculture remains a recession-proof investment as consumer demand for food is largely inelastic,” reports Chris Rawley, CEO of Harvest Returns, a platform for investing in private agriculture companies. “Consequently, investors are seeing solid returns from high-yield, grass-fed cattle notes.”
16. Interest Bearing Crypto Accounts
Though the primary appeal of investing in cryptocurrency has been the meteoric rises in price, now that the trend seems to be in reverse, the better play may be in interest-bearing crypto accounts. A select group of crypto exchanges pays high interest on your crypto balance.
One example is Gemini. Not only do they provide an opportunity to buy, sell, and store more than 100 cryptocurrencies—plus non-fungible tokens (NFTs)—but they are currently paying 8.05% APY on your crypto balance through Gemini Earn.
In another variation of being able to earn money on crypto, Crypto.com pays rewards of up to 14.5% on crypto held on the platform. That’s the maximum rate, as rewards vary by crypto. For example, rewards on Bitcoin and Ethereum are paid at 6%, while stablecoins can earn 8.5%.
It’s important to be aware that when investing in cryptocurrency, you will not enjoy the benefit of FDIC insurance. That means you can lose money on your investment. But that’s why crypto exchanges pay such high rates of return, whether it’s in the form of interest or rewards.
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17. Crypto Staking
Another way to play cryptocurrency is a process known as crypto staking. This is where the crypto exchange pays you a certain percentage as compensation or rewards for monitoring a specific cryptocurrency. This is not like crypto mining, which brings crypto into existence. Instead, you’ll participate in writing that particular blockchain and monitoring its security.
“Crypto staking is a concept wherein you can buy and lock a cryptocurrency in a protocol, and you will earn rewards for the amount and time you have locked the cryptocurrency,” reports Oak View Law Group’s Lyle Solomon.
“The big downside to staking crypto is the value of cryptocurrencies, in general, is extremely volatile, and the value of your staked crypto may reduce drastically,” Solomon continues, “However, you can stake stable currencies like USDC, which have their value pegged to the U.S. dollar, and would imply you earn staked rewards without a massive decrease in the value of your investment.”
Much like earning interest and rewards on crypto, staking takes place on crypto exchanges. Two exchanges that feature staking include Coinbase and Kraken. These are two of the largest crypto exchanges in the industry, and they provide a wide range of crypto opportunities, in addition to staking.
Invest in Startup Businesses and Companies
Have you ever heard the term “angel investor”? That’s a private investor, usually, a high net worth individual, who provides capital to small businesses, often startups. That capital is in the form of equity. The angel investor invests money in a small business, becomes a part owner of the company, and is entitled to a share of the company’s earnings.
In most cases, the angel investor acts as a silent partner. That means he or she receives dividend distributions on the equity invested but doesn’t actually get involved in the management of the company.
It’s a potentially lucrative investment opportunity because small businesses have a way of becoming big businesses. As they grow, both your equity and your income from the business also grow. And if the business ever goes public, you could be looking at a life-changing windfall!
Easy Ways to Invest in Startup Businesses
Mainvest is a simple, easy way to invest in small businesses. It’s an online investment platform where you can get access to returns as high as 25%, with an investment of just $100. Mainvest offers vetted businesses (the acceptance rate is just 5% of business that apply) for you to invest in.
It collects revenue, which will be paid to you quarterly. And because the minimum required investment is so small, you can invest in several small businesses at the same time. One of the big advantages with Mainvest is that you are not required to be an accredited investor.
Still another opportunity is through Fundrise Innovation Fund. I’ve already covered how Fundrise is an excellent real estate crowdfunding platform. But through their recently launched Innovaton Fund, you’ll have opportunity to invest in high-growth private technology companies. As a fund, you’ll invest in a portfolio of late-stage tech companies, as well as some public equities.
The purpose of the fund is to provide high growth, and the fund is currently offering shares with a net asset value of $10. These are long-term investments, so you should expect to remain invested for at least five years. But you may receive dividends in the meantime.
Like Mainvest, the Fundrise Innovation Fund does not require you to be an accredited investor.
Low minimum investment – $10
Diversified real estate portfolio
Portfolio Transparency
Final Thoughts on High Yield Investing
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Notice that I’ve included a mix of investments based on a combination of risk and return. The greater the risk associated with the investment, the higher the stated or expected return will be.
It’s important when choosing any of these investments that you thoroughly assess the risk involved with each, and not focus primarily on return. These are not 100% safe investments, like short-term CDs, short-term Treasury securities, savings accounts, or bank money market accounts.
Because there is risk associated with each, most are not suitable as short-term investments. They make most sense for long-term investment accounts, particularly retirement accounts.
For example, growth stocks—and most stocks, for that matter—should generally be in a retirement account. While there will be years when you will suffer losses in your position, you’ll have enough years to offset those losses between now and retirement.
Also, if you don’t understand any of the above investments, it will be best to avoid making them. And for more complicated investments, like annuities, you should consult with a professional to evaluate the suitability and all the provisions it contains.
FAQ’s on High Yield Investment Options
What investment has the highest yield?
The investment with the highest yield will vary depending on a number of factors, including current market conditions and the amount of risk an investor is willing to take on. Generally speaking, investments with the potential for high yields also come with a higher level of risk, so it’s important for investors to carefully consider their options and choose investments that align with their financial goals and risk tolerance.
Some examples of high-yield investments include:
1. Stocks: Some stocks may offer high dividend yields, which is the annual dividend payment a company makes to its shareholders, expressed as a percentage of the stock’s current market price.
2. Real estate: Investing in real estate, either directly by purchasing property or indirectly through a real estate investment trust (REIT), can potentially generate high returns in the form of rental income and appreciation of the property value.
3. High-yield bonds: High-yield bonds, also known as junk bonds, are bonds that are issued by companies with lower credit ratings and thus offer higher yields to compensate for the added risk.
4. Private lending: Investing in private loans, such as through peer-to-peer lending platforms, can potentially offer high yields, but it also carries a higher level of risk.
5. Commodities: Investing in commodities, such as precious metals or oil, can potentially generate high returns if the prices of those commodities rise. However, the prices of commodities can also be volatile and subject to market fluctuations.
It’s important to note that these are just examples and not recommendations. As with any investment, it’s crucial to carefully research and consider all the potential risks and rewards before making a decision.
Where can I invest my money to get high returns?
There are a number of places you can invest your money to get high returns. One option is to invest in stocks, which typically offer higher returns than other investment options. Another option is to invest in bonds, which are considered a relatively safe investment option.
You could also invest in real estate, which has the potential to provide high returns if done correctly. Finally, you could also invest in commodities, such as gold or silver, which can be a risky investment but can also offer high returns.
What investments can I make a 10% return?
It’s difficult to predict exactly what investments will generate a 10% return, as investment returns can vary depending on a number of factors, including market conditions and the performance of the specific investment. Some investments, such as stocks and real estate, have the potential to generate returns in excess of 10%, but they also come with a higher level of risk. It’s important to remember that past performance is not necessarily indicative of future results, and that all investments carry some degree of risk
If you’re seeking to earn extra income during the colder months, consider shoveling snow.
Many folks are unable to or just don’t want to shovel snow off their driveways and walkways.
Being in the 21st century, you don’t need to worry about going door to door and soliciting your services. Thanks to the smartphone app Shovler, you can see those in your immediate area looking to hire someone just like you.
The 2023 winter season has already seen a few powerful storms, especially in the South. Now’s the time to sign up for a service such as Shovler and be prepared to rake in the dough during the next blizzard.
What Is Shovler?
The Shovler app uses GPS to connect people in need of snow removal with nearby users willing to do the shoveling.
Registered snow shovelers can use the app to quickly view and accept jobs within 20 miles of their current location — no haggling or in-person contact required.
There are about 150,000 snow shovelers available for hire on the Shovler app, according to the company’s founder, Daniel Miller.
Miller, who lives in New York City, created Shovler in 2016 after a winter storm buried his car in snow — and he didn’t own a shovel.
He spoke to others in the same situation and came up with the idea for the snow shoveling app.
“I used to shovel snow as a kid in the ’90s,” Miller said. “I always had a great sense of satisfaction after completing a large driveway for a neighbor.”
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How Do You Get Started On Shovler?
Before you can put your snow shoveling skills to the test, you’ll need about 10-15 minutes to sign up (including connecting the required payment platform).
Download the Shovler app, select “Become a Shoveler” and fill out your information to get started. You will also need to connect a Stripe payment system account to get paid.
After creating your account, the app makes it super easy to find snow shoveling jobs in your area.
You can search for nearby jobs within the Shovler app or select “go on duty” to be notified when new snow shoveling jobs are added.
There are different types of snow removal jobs to choose from. You can make money shoveling driveways and walkways, or digging out cars parked on a city street.
Business owners can also hire shovelers to clear the snow in front of their businesses or small parking lots.
What You Can Expect as a Snow Shoveler
Nathan Simondet, a Shovler user in Minneapolis, joined the app in 2019 to make some extra cash.
“The main problem is there is only work when it snows, and there is competition with other shovelers to accept jobs before they do,” Simondet said. “But the work is usually pretty easy.”
According to Simondet, a typical snow removal job takes 20 to 30 minutes, more if there’s a lot of snow.
“My last job only took five minutes,” Simondet said. “There was only an inch of snow, and all I had to do was the front sidewalks.” And since you get paid by the job, not the time it takes, a quicker job is really worth more money.
Snow shovelers bring their own equipment, including a shovel, brush, salt and any other tools they might need to remove snow.
Investing in the right snow removal gear and equipment can also help boost profits.
“Last year I did 70 jobs and made about $3,000,” Simondet said. “I already had a snow shovel and a snowblower, but I ended up investing in a bigger shovel to do jobs faster.”
You should arrive at a job within 45 minutes of accepting it. Once you’re done, you’ll upload a picture of your work to the Shovler app for evaluation.
How Much Money Can You Make as a Shoveler?
A Shovler shoveler can expect to make between $35 and $75 for small jobs, while bigger gigs like clearing small business parking lots bring in more cash.
The Shovler app factors in the size of the job, the type of area to be shoveled and current weather conditions to determine the price.
For example, you’ll make more money during a snowstorm than after a light snowfall. If demand is surging, the price increases.
The person creating the job also has the option to increase the price.
Shovler Pay Rate
Situation
Amount
Details
Parked car
$30 to $40
On a city street
Driveway
$35 to $75
Two-car driveway
Sidewalk in front of house
$35 to $75
Average length
Parking lot
50c to $2 per sq foot
For businesses
Sidewalk
50c to $2 per sq foot
Public or private
Like many side gig apps, Shovler takes a cut from each completed job, and in this case, it’s 20%. However, that won’t impact your expected earnings. The fee is taken out before the job is listed as available.
You’ll need to bring your A game too. If a job is rated lower than four stars, the Shovler app reduces your pay. You’ll get docked 5% for each missing star, so a two-star rating equals a 10% reduction in your pay.
A Holiday Side Gig
Jayson Abro, a Northeast shoveler, said the app makes it easy to earn extra money around the holidays.
“I made more on Shovler in two days than I did trying to do Uber for a month,” Abro told The Penny Hoarder.
Abro said he can quickly find jobs by simply opening the app after a big snowfall.
“We get a few big snowstorms a year so I just log on during those days and see hundreds of jobs and work through the ones that are close,” he said.
Like Simondet, Abro said he made about $3,000 during winter 2020-21 using Shovler.
Another cool perk: Snow shovelers get to keep all the tips they receive. Shovler noted that “over 75% of users tipped their shoveler and the tip amount to shoveler’s pay was an average over 30%!” — that’s quite a hefty bit of extra change coming from tips.
During a 2020 winter snowstorm, Shovler reported that users tipped their shovelers an average of 44%.
All Shovler transactions are completed through the app using credit card information. Shovelers receive payment once the job is reviewed by the customer or 13 hours later, whichever is sooner.
Stripe will transfer money into your account every two to three business days.
How Busy Will You Be Shoveling Snow?
If you’re looking to make Shovler a lucrative job, it’s wise to keep an eye on the local weather forecast.
The app is available everywhere in the United States and parts of Canada, but snowier parts of the country draw more business.
In 2020, New Jersey, New York, Massachusetts and Michigan were the busiest states on Shovler, due to record snowfall in the Northeast. During a typical year, Minnesota, Colorado, Wisconsin and Illinois take the top spots, according to Miller.
“In order to fill every job on the platform we need shovelers everywhere in North America — at least the places that get snow,” Miller said.
Frequently Asked Questions (FAQ)
How Does the Shovler App Work?
The Shovler app connects independent snow shovelers with those looking to purchase their services. The entire process works within the company’s Android and iOS smartphone apps. Rates (and shoveler payments) are set based on the specifics of the job requested.
How Much Do You Make on the Shovler App?
An independent contractor can expect to make between $35 and $75 for small jobs. Larger jobs, such as clearing small business parking lots, bring in more cash.
How Do You Start a Snow Shoveling Side Hustle?
Signing up for an app like Shovler is a great way to connect yourself with locals who need snow shoveling services. You’ll also need to be equipped with the proper warm attire, snow shovels and additional supplies, such as ice salt and car-cleaning tools.
Contributor Jenna Limbach writes on financial literacy and lifestyle topics for The Penny Hoarder. Michael Archambault is a senior writer at The Penny Hoarder.
Information from former Penny Hoarder writer Carson Kohler is included in this report.
2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $548,250* (Call 888-573-4496 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Sierra County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Sierra County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Sierra County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Sierra County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31st, 2021, the median home value for Sierra County is $258,015. In addition, the median household income for residents of the county is $52,148.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
In Sierra County, there aren’t many flood hazard areas other than areas around Davies creek north of the Stampede Reservoir.
How do I learn about Property Taxes?
Laura Marshall is the Sierra county tax assessor. Her office can be reached at 100 Courthouse Square, Room B1 P.O. Box 8 Downieville, California 95936. In addition, her office can also be reached by calling (530) 289-3283.
The state of California offers various incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are California Competes Tax Credit which offers qualifying businesses tax credit and the New employment Credit program which offers a tax credit for taxpayers who hire full-time employees. These and many other programs help to further diversify the state’s economy.
What is the Population?
As of 2019, Sierra County’s population is 3,005 which includes 235 veterans Moreover, demographically speaking, 82% of the population is White, with 12% Hispanic, and 2% American Indian.
Most county residents are between 18 and 65 years old, with 16% under 18 years old and 32% older than 65.
In total, the county has about 1,241 households, with an average of two people per household.
What are the major cities?
The county has one city, and ten census-designated places the city of Downieville which serves as the county seat.
About Plumas County
Located in the Sierra Nevada mountains, the county was established in 1852, on land that was once home to the Washoe and the Miwok people. Archeological evidence shows that the area where the county is located had been inhabited for at least 5,000 years.
Eventually, in 1844, the first European Americans arrived in the area after making their way up the Truckee River. By 1847, there was increased migration to the area and in 1848 there was a boom in the local population after the discovery of gold in California.
Today, residents of the county tend to have jobs in the construction, public administration, and health care industries. As a result, the most common types of occupations in the county are in management, construction, and office administrative support.
When it comes to education, the county is home to the Sierra-Plumas Joint Unified School District. This is the only school district in the county and currently has about 411 students in its four educational institutions.
Furthermore, in addition to its education and workforce, the county is also home to various parks and recreational opportunities. Some of these parks are Alleghany Park, Downieville Visitor Center, Kentucky Mine Museum, and Park.
Veteran Information
The county is currently home to 292 veterans.
County Veteran Assistance Information
Sierra County Veteran’s Service Office – 270 County Hospital Road, Suite 206, Quincy, CA 95971.
Apply for a VA Home Loan
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
There are no VA-approved condos available in Sierra County. Although if you’re still interested in getting a condo through the approval process, call us at (877) 432-5626.
Inside: Exchange unwanted gift cards for cash at gift card exchange kiosk near you! These convenient machines allow you to exchange unwanted gift cards for cash.
Do you have a bunch of gift cards that you never use? Or maybe you got a gift card for a store that you don’t really like.
I know I do!
In the past year, I have made it my mission to use up old gift cards, but there are still some untouched.
But now, there is an easy way to get cash for your unwanted gift cards – using a Gift Card Exchange Kiosk!
It may sound too good to be true – until you actually give it a try.
This is a great way to get cash fast and get rid of unused gift cards.
What is a gift card exchange kiosk?
A gift card exchange kiosk is a physical machine that allows you to turn unwanted gift cards into instant cash.
It’s a convenient option that allows you to insert your gift card into the kiosk and get a quote for how much cash you can get in return. The process is simple and fast, with the money being dispensed immediately.
Gift card exchange kiosks accept gift cards from many retailers and will pay you a percentage of the balance on the card.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What types of gift cards can be exchanged for cash at a kiosk?
At a gift card exchange kiosk, you can usually exchange gift cards from well-known retailers such as Nike, Best Buy, Macy’s, and Apple for cash or a gift card of the same or lower value.
Other gift cards from lesser-known retailers may not be accepted.
How does gift card exchange kiosk work?
Gift card exchange kiosks are becoming increasingly popular as they offer a convenient way to turn unwanted gift cards into cash.
If you have a gift card that you are no longer using, here is a step-by-step guide on how to use a gift card exchange kiosk:
Find a gift card exchange kiosk near me.
Find the gift card slot on the machine. This position can vary for different kiosks, so be sure to look for it.
Insert your unwanted gift card.
Wait for the machine to scan and process your card.
Review the offer that flashes on the screen. You will be offered either a discounted value of your gift card in cash or a gift card (of the same or a lower value) from another retailer.
Accept the offer and collect your cash or gift card. For some kiosks, you will receive a voucher which you can then exchange for cash at the store’s cash counter.
If you decline the offer, the machine will return your gift card with its original balance.
Using a gift card exchange kiosk is a simple and convenient way to get cash for unwanted gift cards.
How can I find a gift card exchange kiosk near me?
If you are looking for a gift card kiosk near you that will exchange your gift cards for cash, there are a variety of options available.
Typically, you can visit one of the stores listed such as:
If you are looking for an even more convenient option, you can now sell your gift cards online! Using CardCash is a great option as they offer high payouts and a safe alternative to going to an in-person kiosk.
I would avoid using other online platforms as sometimes if it sounds too good to be true, then it probably is!
Do gift card exchange kiosks exist?
Yes, gift card exchange kiosks do exist. These are machines that allow you to trade in your unwanted gift cards for cash or other cards.
However, I struggled to find any in the big city. So, your mileage may vary.
Learn you can read my Cardcash review when exchanging a gift card online.
Using Coinstar Gift Card Exchange
Coinstar was once a great option for those looking to exchange their gift cards for cash, especially if a gift card was about to expire.
The process was simple: enter the details of the gift card, receive an offer on the screen, accept or decline, and receive cash if accepted.
However, Coinstar has since abolished gift card exchange kiosks and now only allows people to exchange coins for gift cards.
Unfortunately, Coinstar is no longer an option for those wanting to get cash for a gift card, but you can use CardCash to turn those unwanted or soon-to-be-expiring gift cards into cash.
FAQ
When exchanging a gift card at a gift card exchange kiosk, you can usually expect to get around 60 – 85% of the remaining monetary value of the gift card in cash.
For example, if you have a gift card with a remaining balance of $100, you could expect to get around $60 – $85 in cash after the fee is taken out.
It is important to check the balance of the gift card before using the kiosk, as this will determine how much money you can get from the exchange.
Yes, there is a transaction fee associated with a gift card exchange kiosk.
Depending on the location and the company running the kiosk, the fee can vary.
Yes, there are some limitations and restrictions associated with using a gift card exchange kiosk such as only accepting gift cards from certain retailers
For example, Visa®, Mastercard®, and other bank-issued gift cards are not accepted at a Gift Card Exchange kiosk and therefore cannot be sold for cash.
Additionally, some kiosks may require you to enter personal information and provide identification for security reasons, which can take a few minutes.
The main difference between a coin machine and a gift card exchange kiosk is the type of payment they accept.
Coin machines accept only coins and dispense cash, while gift card exchange kiosks accept gift cards and dispense cash, e-gift cards, or a charity donation.
Time to sell gift cards for cash instantly near me
If you have an unwanted gift card, don’t fret!
You can exchange it for cash at a gift card exchange kiosk.
These kiosks are becoming increasingly popular, so you should be able to find one near you. Just be sure to check the fees before you exchange your card so you know how much cash you’ll walk away with.
Selling gift cards online is much more convenient than selling them in person, as you don’t have to worry about finding a kiosk near me.
Use CardCash for a hassle-free way to sell your gift cards online. Then, you can easily trade in your gift card for cash or other gift cards or cash.
Know someone else that needs this, too? Then, please share!!
Cost of carry refers to any and all ongoing costs that you need to pay in conjunction with holding a given investment. Transaction costs, which are incurred upon the purchase or sale of the asset, are typically not considered a carrying cost.
Cost of carry can come in a variety of different forms — here are a few types of carrying costs that you’ll want to be aware of:
• Storage costs, if you are investing in the futures market for physical goods
• Interest paid on loans used for an investment
• Interest in margin accounts when borrowing to invest in stocks or options
• Costs to insure or transport physical goods
• The opportunity cost of investments
Most if not all investments have carrying costs, and savvy investors will take them into account when deciding whether an investment is worth it. Even if a particular investment doesn’t have obvious carrying costs, there is always the opportunity cost of making one investment over the other.
How Cost of Carry Works
The way that cost of carry works depends on the type of investment that you are considering. If you are investing in the futures markets for tangible goods like coffee, oil, gold, or wheat, you may have carrying costs associated with these physical goods. For example, if you buy a commodity like crude oil, you must pay the costs for transporting, insuring and storing that oil until you sell it.
To accurately calculate your trading profits you must include those carrying costs.
In a purely financial transaction like buying stock or trading options, there can still be carrying costs involved. You may have to pay interest if you are borrowing money with a margin account. You may also incur what are called opportunity costs. Opportunity costs refer to the money you could have made if you had invested your money in other areas.
If you are holding $10,000 in your stock account waiting for an option assignment, you can’t use that $10,000 for other investments.
Which Markets Are Impacted by Cost of Carry?
Cost of carry is a factor in a variety of different types of investments. Options trading has carrying costs from interest costs if you trade in a margin account to holding costs.
Investing in commodities may require a cost of storing, insuring, or transporting your goods. You should be aware that most types of investments also have opportunity costs.
Cost-of-Carry Calculation
The simplest cost-of-carry calculation just includes all of your carrying costs as a factor when you analyze the profitability of a particular investment. So, if
• P = Purchase price of an investment
• S = Sale price of the same investment
• C = carrying costs while holding the investment
The profit of this investment could be expressed as Profit = S – P – C.
Futures Cost of Carry
The futures market has two different prices for each type of commodity. The spot price refers to the price for immediate delivery (i.e. on the spot). A futures price is the price for goods at some specified time in the future. Because most futures contracts of commodities come with non-zero carrying costs, the futures price is usually (but not always) higher than the spot price.
Options Cost of Carry
When trading options the costs of carry fall into a few categories:
• Interest costs – Some investors borrow money to purchase options, i.e. a loan from a friend, a bank loan, or a brokerage margin account.
Whatever the source of the money, the interest paid to service the borrowing is a carrying cost.
• Opportunity costs – You’ve chosen to invest in options. But where else could you have invested that money? Because most alternative investments carry risk, as does investing in options, it’s difficult to make an apples-to-apples comparison.
In finance, we look at risk-free investing rates to assess the opportunity cost. “Risk-free” is defined as the return available by investing in U.S. Treasuries. In the past, 30-year bonds were the standard, but 10-year returns and even the return on short-term Treasury notes may also be used.
• Forgoing Dividends – One of the disadvantages of owning options compared to owning stock, is that you are not eligible for dividends as an option holder. The market makes an effort to price dividends into the option premium, but just as interest rates can fluctuate, so can dividend rates.
Examples of Cost of Carry
Here is a simple example of cost of carry and how it might affect an investment in purchasing Brent Crude Oil.
Say you buy a contract for 1,000 barrels of Brent Crude at $80/barrel. Six months later, the price of oil has gone up to $90/barrel, and you sell. You might think that you have earned a $10,000 profit, but that is not accounting for the cost of carrying the oil.
If it cost you $3,000 to store and insure those barrels of oil for the six months that you owned them, those carrying costs must be subtracted from your profit. You also are liable for delivering the oil, which might cost another $1,000. Considering the cost to carry, your actual profit was only $6,000. While these costs are easiest to understand with physical goods like commodities, most types of investments have carrying costs.
Cash and Carry Arbitrage
Like crypto arbitrage, there sometimes exists a type of arbitrage called cash-and-carry arbitrage. In cash-and-carry arbitrage, an investor will purchase a position in a stock or commodity and simultaneously sell a futures contract for the same stock or commodity.
If the futures price is higher than the combined amount of the stock price plus carrying costs, you can secure a relatively risk-free profit via cash and carry arbitrage.
Cost of Carry and Net Return
As we’ve discussed already, the cost of carry can have an impact on the net return of any investment. When determining your total profit and the return on investment (ROI), you need to account for any and all costs that you incur as part of the investment.
These might include transaction costs like commissions as well as carrying costs. Subtract all such costs from your gross profit to calculate the net return of your investment.
Can You Do Anything About Cost of Carry?
Since the cost of carry directly and negatively affects your total profit, you may be wondering if you can do anything about it. While there are carrying costs with almost every type of investment, one way to minimize the cost of carry is to avoid investments that have significant carrying costs.
On the other hand, if your specific situation allows you to have below market carrying costs, you may be able to earn a profit with cash and carry arbitrage.
The Takeaway
The cost of carry is a term used in options and futures trading that refers to the ongoing costs incurred in an investment while you are holding it.
With physical commodities, the cost of carry refers to storage, insurance, delivery and other costs specific to the fulfillment of your contract.
When applied to options trading the carrying costs are financial in nature, such as, interest costs, opportunity costs, and forgoing dividends.
If you’re ready to try your hand at options trading, you can set up an Active Invest brokerage account and trade trade options from the SoFi mobile app or through the web platform.
And if you have any questions, SoFi offers educational resources about options to learn more. SoFi doesn’t charge commissions, and members have access to complimentary financial advice from a professional.
With SoFi, user-friendly options trading is finally here.
FAQ
How can you calculate cost of carry?
The cost of carry refers to any costs that you incur during the course of your investment. In commodities trading, this generally refers to costs like storage, insurance, or delivery of the commodity. In other types of investments, the cost of carry could include interest charges or the opportunity cost of using your money.
Do bonds have a cost of carry?
Yes, nearly all investments, including bonds, have some sort of cost of carry. In the bond market, the cost of carry generally refers to the difference between the face value of the bond plus premiums minus applicable discounts.
How are ordering and carrying costs different?
Ordering costs are the costs that you pay as part of the ordering process. In a stock or option transaction, any broker’s commissions that you pay would be considered ordering costs. While ordering costs are usually incurred only once (at buy and/or sale), carrying costs are the costs that you must pay to hold an investment throughout its duration.
Photo credit: iStock/fizkes
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. SOIN0322025
Inside: Do you need to make $5000 fast for ways to make extra money? This guide has dozens of ideas for earning money. When you need to know how to make 5000 fast, this list has something for you.
Are you looking for ways to make 5000 dollars fast?
You’re in the right place.
In this post, we’ll share 15 realistic ways to make money quickly.
Your first thought might be SCAM to make this much money fast, but honestly, there are plenty of ways to make extra cash without any special skills or experience.
You just have to decide what works best for you. That is how you will make the most money without feeling like you are working.
I love hustling to make extra money to afford things we couldn’t otherwise.
So if you’re ready to start making some extra cash, let’s get started!
What are the most realistic ways to make $5,000 fast?
Moreover, making $5,000 fast is possible through a combination of online and offline methods.
Selling items, offering freelance work, participating in paid surveys, trading stocks, and pet-sitting or dog-walking services are all viable options.
Set goals, track progress, and experiment with multiple gigs to find what works best for you. With dedication, effort, and a little bit of creativity, you can reach your income goal in no time.
How to double $5,000 quickly?
If you want to double $5,000 quickly, there are several realistic ways to achieve this goal. Here are five options to consider:
Invest in the stock market: The stock market can be a great way to make money quickly, but it also comes with risks. Look for companies with a strong track record and invest wisely.
Start a side hustle: Starting a side business or selling items online can be a great way to make extra money. Consider your skills and interests to find a profitable niche.
Participate in affiliate marketing: Affiliate marketing involves promoting products and earning a commission for each sale. Look for products with high commissions and a strong customer base.
Flip items for profit: Buy low and sell high by flipping items like cars, furniture, or electronics. This can be a risky business, so do your research and start small.
Play the long game: Consider living a frugal life and saving and investing your money over time to see a larger return. This may not double your money quickly, but it can lead to significant growth in the long run.
Each method comes with its own potential risks and benefits, so it’s important to do your research and choose the option that best fits your skills and financial goals.
With dedication and hard work, doubling your $5,000 is within reach.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
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16 realistic ways to make 5000 dollars fast
If you’ve been looking for ways to make some extra money, there are many opportunities out there.
While most won’t make you rich overnight, if you put in the effort, you can find some that will help you reach your financial goals.
Here are 16 realistic ways to make $5,000 fast.
1. Sell Unwanted Items
If you’re looking to make $5000 fast, selling unwanted items is a great way to do it.
Start by identifying valuable items in your home such as antiques, electronics, furniture, or musical instruments.
Once you’ve identified your items, choose a platform to sell on eBay, Craigslist, and Facebook Marketplace are all great options.
When pricing your items, do some research to ensure you’re pricing them competitively. Use the “buy it now” feature on eBay or set a fair price on Craigslist and Facebook Marketplace. Don’t forget to take clear photos and provide detailed descriptions of your items.
Check out the most popular items to sell and make money. Plus you can declutter your home.
2. Take on a Part-Time Job
Part-time jobs offer a steady stream of income and opportunities for skill development. Often this is an overlooked way to make money, but there are plenty of part-time jobs available.
Popular part-time job options include retail or food service positions, which often offer the potential for tips or commission-based earnings.
Balancing a part-time job with other commitments may be challenging, but it can be done with proper planning and prioritization. Overall, a part-time job can be a reliable way to generate extra income and reach financial goals.
Many happen to be early morning jobs, too.
3. Invest in Stocks
Investing in stocks can be a realistic way to make $5000 fast. In fact, learn how fast you can make money with stocks.
Since you are interested in making money fast, you need to be an active trader, which means you are trading for income. Not a buy-and-hold investor.
Typically, most active traders prefer to trade growth stocks such as Google, Microsoft, Amazon, Apple, or Tesla.
It’s important to do your research and choose the right stocks to invest in. More importantly, you have to know when to enter and exit. Here is the best course I know on learning how to trade stocks.
However, keep in mind that investing in stocks is subject to market risk, so it’s important to consult with a personal finance expert and assess your risk tolerance before making any investments.
4. Borrow Money
Remember that borrowing money should not be a long-term solution and explore other ways to make money as well.
If you need to make $5000 fast, borrowing money might be an option. You can borrow from a personal loan, credit card, or friends and family.
Personal loans are a good option if you have good credit, but they often come with high-interest rates.
Credit cards can offer cash advances, but the interest rates can be high too.
Borrowing from friends or family can be a good option, but it can also put a strain on relationships.
To secure the best possible terms, shop around for loans and compare interest rates and fees. Make sure to read and understand the terms and conditions before signing, and ensure you can make the payments on time.
5. Sell Things Online
Selling things online is a great way to make extra cash quickly. This involves buying items you know you can resell online for a higher price.
With the ability to reach a wider audience and the convenience of not having to leave your house, selling online has become increasingly popular.
Platforms like eBay, Etsy, and Amazon offer product-selling concepts that make it easy to sell a variety of items, from clothes to electronics.
To optimize product listings, take high-quality photos, write detailed descriptions, and price items competitively. When handling shipping and handling, use free shipping labels, and provide excellent customer service to ensure a positive experience for buyers.
6. Land a Job That You Can Do From Home
To land a job that you can do from home, it’s important to have the necessary skills and qualifications for the job you’re interested in.
Popular work-from-home jobs include online tutoring, virtual assistance, bookkeeping, social media management, and transcription.
Be prepared to participate in virtual interviews and demonstrate your ability to work independently. With the right skills and job search strategies, you can land a job that you can do from home.
Find the best non phone work from home jobs.
7. Make Crafts
Crafts can be a fun way to turn your hobby into a money-making side hustle.
Here’s a step-by-step guide to help you get started:
Choose your craft: Decide on a craft that you enjoy making and that you think will sell well. Popular options include jewelry, candles, and home decor.
Gather your materials: Depending on your craft, you’ll need to gather materials such as beads, wax, or fabric. You can find these at craft stores or online.
Develop your skills: If you’re new to your chosen craft, take some time to practice and improve your skills. Watch tutorials and read books to learn new techniques.
Create your products: Once you have your materials and skills, start creating your products. Make sure they’re high-quality and visually appealing.
Set up shop: You can sell your crafts online through platforms like Etsy or Amazon Handmade. You can also sell them in person at craft fairs or local markets.
Promote your products: Use social media and word of mouth to promote your products. Share photos and information about your crafts and encourage people to buy them.
By following these steps, you can turn your love of crafting into a profitable side hustle. Remember to be patient and persistent in your efforts to sell your crafts.
8. Rent Out a Space
Right now, your space can be a profitable side hustle.
To make $5000 fast by renting out a space, start by identifying the type of space you can rent out, such as a parking room, garage, or storage space.
You can even get creative and rent out your pool.
Clean and organize the space, then list it on online platforms like Airbnb, Turo, or Neighbor. To ensure a smooth rental process, screen potential renters, set clear rules and expectations, and maintain regular communication.
With some effort and attention to detail, renting out a space can provide a lucrative source of extra income.
9. Sell Digital Goods
This is one of the most popular ways to make money.
Digital goods are products that can be downloaded, streamed, or accessed online, such as ebooks, printables, stock photos, and online courses.
They are a viable option for making money quickly because they require little to no overhead costs and can be sold to a global audience.
The most popular is creating and selling printables. Learn how to make printables.
With dedication and effort, selling digital goods can be a lucrative way to make up to $5000 fast.
10. Join the Gig Economy
The gig economy refers to a labor market characterized by short-term contracts or freelance work, as opposed to permanent jobs.
Popular platforms in the gig economy include:
Joining the gig economy can be an effective way to make $5,000 quickly. One of the main benefits of working in the gig economy is flexibility, as you can determine your own schedules.
To maximize earnings, it’s important to treat gig work like a business and stay organized, tracking expenses and income.
11. Work as a Shopper
As a shopper, your job is to pick up and deliver items to customers using your own vehicle.
Here’s a step-by-step guide on how to get started:
Choose a platform: There are several platforms to choose from, such as Instacart, Shipt, and DoorDash. Research each platform and choose the one that best suits your needs.
Sign up: Once you’ve chosen a platform, sign up and complete the application process. This typically involves providing personal information, a valid driver’s license, and passing a background check.
Attend orientation: Some platforms require you to attend an orientation session before you can start working. This will provide you with important information on how to use the app, how to pick up and deliver items, and how to maximize your earnings.
Start shopping: Once you’re approved, log into the app and start accepting orders. Be sure to read the instructions carefully and communicate with the customer if you have any questions.
Maximize earnings: To maximize your earnings, consider working during peak hours when there are more orders available. You can also increase your tips by providing excellent customer service and communicating with customers throughout the shopping process. Additionally, some platforms offer bonuses for completing a certain number of orders within a specified time frame.
Ensure success: To ensure success, it’s important to be organized and efficient. Plan your route ahead of time and try to group orders in the same area together. Keep track of your expenses, such as gas and vehicle maintenance, and make sure you’re earning enough to cover these costs.
With the convenience of on-demand shopping and delivery services, there’s never been a better time to get started.
12. Clean Houses
Cleaning houses can be a lucrative business, with the demand for house cleaning services always high.
To get started, you will need basic cleaning supplies such as cleaning products, mops, vacuums, and cleaning cloths. You can market your services by creating flyers, promoting on social media, and offering referral discounts.
Here are some tips to be successful:
Setting your rates depends on factors such as the size of the house and the frequency of cleaning.
Negotiating with clients can help you secure long-term contracts.
Providing excellent customer service is crucial for building a loyal client base.
As your business grows, consider expanding your services to include laundry and organizing, and hiring additional staff to take on more clients.
With dedication and hard work, you can make up to $5000 fast by cleaning houses.
13. Take Photos
If you’re looking for a side hustle that can earn you some extra cash, taking photos on your phone and selling them on stock photo sites is a great option. You don’t need to be a professional photographer, but having some experience can be helpful.
Some of the best apps to sell your photos on include Shutterstock, Deposit Photos, or iStock by Getty Images.
To get started, you’ll need to create a portfolio of your best work and start submitting them to stock photo sites. While you might need to purchase a camera and photo editing software, there’s not much else you need to get started.
It’s possible to make $1 or more per photo you sell.
14. Write Web Content for a Blog
Well-written web content is essential for making money online, as it can attract more visitors to your blog and keep them engaged.
To write effective web content, it’s important to understand your audience and their needs and to use clear and concise language.
Make sure to use headings, bullet points, and images to break up text and make it easier to read. Additionally, provide actionable advice that can help readers make money or solve a problem.
Sharing your personal experiences and stories can also help to connect with your audience and build trust. By following these tips, you can create high-quality web content that can help you make money and increase website traffic.
15. Engage in Affiliate Marketing
Affiliate marketing is promoting someone else’s product or service and receiving a commission for every sale you facilitate.
To be successful with affiliate marketing, start by finding products with high commissions and you will need a large number of followers.
Build an audience around the products you’re promoting and promote them through social media and email marketing. Focus on building a strong relationship with your audience and providing value through helpful content.
With the right strategy and persistence, you can earn your first $5000 through affiliate marketing in no time.
16. Provide Virtual Assistant Services
Virtual assistant jobs are becoming increasingly popular as a way to make money from the comfort of your own home.
As a virtual assistant, you can perform a variety of tasks such as scheduling appointments, managing social media accounts, answering emails, creating presentations, and more. The amount of money you can make will vary depending on your skills, but the average hourly rate for a virtual assistant is around $25 per hour.
Additionally, taking virtual assistant courses and learning new skills can help you specialize and earn more money.
How to use what you’ve learned to start making money quickly
Believe me, I have gone down the road of making money with MLMs or (multi-level-marketing). However, I have found the above ways to be better options for me.
Once you find your groove, you will be able to scale up how much money you make.
Step 1: Research ways to make money fast
If you need to make money quickly, there are many legitimate opportunities available.
Try multiple gigs to find what pays the most in your area and what you enjoy doing.
When researching ways to make money fast, be cautious of scams and do your due diligence before committing to anything. With a bit of creativity and determination, you can find practical and actionable steps to achieve your financial goals.
Step 2: Choose a way to make money fast
When choosing the best way to make $5000 fast, there are a few criteria to consider.
First, consider your skills and interests. If you enjoy driving, delivering for DoorDash or UberEats could be a good fit. If you’re tech-savvy, freelance work or online tutoring might be a good option.
Second, consider the time commitment. Some methods, like selling items on eBay or Facebook Marketplace, can be done in your spare time, while others, like starting a side hustle or taking on freelance work, may require more time and effort.
Finally, consider the potential earnings. Some methods, day trading stocks or selling printables, have the potential for higher earnings than others.
Step 3: Get started making money fast
If you’re looking to make money fast, it’s important to take action right away and not get bogged down by analysis paralysis.
Start with the methods that require the least amount of time and effort, such as selling items you no longer need or completing online surveys. These are easy-to-implement money-making strategies that can quickly generate extra cash.
If you need to save up for a course, then set aside your profits to make that happen.
Step 4: Sacrifice your time for money
Sacrificing your time can be a great way to make money quickly.
The best is when you start to build passive income, you are earning money without the need to work. That is when your hard work will pay off.
By dedicating your time to side hustles, you can earn a significant amount of money within a short period.
Step 5: Maximize your revenue with each step
To make $5000 fast, it’s essential to set realistic revenue goals and identify the most profitable revenue streams.
Prioritize the revenue streams that are most feasible and have the highest earning potential. Once you have identified your revenue streams, optimize your earnings by leveraging your skills and resources.
This could include networking, outsourcing, or investing in your own education to improve your earning potential.
FAQ
Flipping items on eBay is a great way to make money.
To start, you need to find items that you can buy for a low price and sell for a higher price. Look for items that are in demand, such as electronics, clothing, and collectibles. You can find these items at flea markets, garage sales, and online marketplaces like Craigslist and Facebook Marketplace.
Remember to reinvest your profits into buying more items to flip. With time and effort, flipping items on eBay can be a lucrative side hustle.
Becoming a content creator on YouTube might be an option for you.
You can make money from ads, affiliates, and sponsored content, as well as selling your own merch and products.
It is important to create consistent and top-quality videos to build up a following, but it can be a lucrative online side hustle.
freelance work, and more. Here are some of the most popular options:
Freelance work: Graphic design, web development, digital marketing, typing, and more.
Food delivery: DoorDash, Instacart, Uber Eats, Grubhub, and more.
Package delivery: Amazon Flex, Roadie, GoShare, Lugg, and more.
Rideshare driving: Lyft, Uber, and more.
While these jobs offer flexibility and quick payment, they may come with fees and additional costs. Nevertheless, they are great options for making extra income on the side.
There are plenty of job opportunities in the gig economy, ranging from food delivery to How to make $5,000 in a month?
There are several realistic and actionable ways to make $5,000 in a month.
Freelance jobs like virtual assistance, freelance writing, and web development are great options. If you have an established following, your YouTube channel could also make more than $5,000. Other methods to explore are selling on Amazon, affiliate marketing, and blogging.
While some methods may require more work than others, there’s no reason you can’t earn this money quickly.
Remember to think outside the box and explore all of your options.
How to Get 5000 Dollars Fast
Remember that making money fast requires dedication and persistence, but the rewards can be significant.
The potential earnings and time commitment for each option vary, but with effort and dedication, you can make $5000 within a couple of months.
Selling items can earn you a few hundred to a few thousand dollars, while freelance work and trading stocks can earn you thousands of dollars depending on the quality of your work.
Don’t be afraid to try new things and experiment with different methods until you find what works best for you.
Also, consider what works well for one person may not be the best idea for the next.
Maybe earning 5k is more than you need:
Know someone else that needs this, too? Then, please share!!
If you’ve ever had a credit card, student loans, or other type of debt, you likely have a credit report. Credit reports serve as a record of how you have handled the repayment of any loan or debt that you’ve taken out. The items that are contained in your credit report primarily come from information collected by the three major credit bureaus.
Many lenders might look at your credit report when they are considering whether or not to extend you additional credit. Your credit score is also calculated in part from information that’s included on your credit report. These are two good reasons to regularly look at your credit report and make sure the information in it is accurate.
What Is a Credit Report?
At its simplest, a credit report is a compilation of information regarding past debts, loans, or credit card accounts that you’ve managed. Your credit report will contain basic information about you, as well as information on the various accounts you’ve had in the past. This might include the name of the creditor, the dates the account was open, the monthly payment amount, if applicable, and any current or outstanding balance.
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How Does a Credit Report Work?
The issuers of most credit cards, loans, or other forms of debt report information about that debt to the most popular credit bureaus — Experian, Equifax, and TransUnion. Each credit bureau compiles its own information, though there is usually a lot of overlap between the information that appears on credit reports from different credit bureaus. Lenders typically send updated information to the credit bureaus each month, or if any information about your debt changes.
Recommended: Tips for Using a Credit Card Responsibly
Credit Report Information and Your Credit Score
It’s important to understand the relationship between the information on your credit report and your credit score. While these two things are related, they are not the same thing. As information on your credit report changes, your credit score updates as well. This means that it’s possible for your credit score to change every month (or even more often).
Further, while the information on your credit report influences your credit score, you won’t find your credit report listed on your credit report. Rather, you’ll have to go to lenders or credit monitoring websites for that information, both of which can allow you to check your credit score without paying.
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Information Provided By a Credit Report
In addition to information about your accounts, your credit report may include other information about you. As one example, a credit report from Experian consists of four sections:
• Personal information: This includes details such as your name, address, employment information, and any past names you’ve used.
• Accounts: You’ll see both open and recently closed accounts listed.
• Inquiries: Both hard and soft credit checks will appear, though only hard pulls affect your credit score.
• Public records: This is information about you gathered from public records, including bankruptcies.
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How Is a Credit Report Made?
Each of the major credit bureaus has its own process for how it generates a credit report. It’s typical that the credit bureau will have an informational section with details about you, sourced from loan applications and/or public records.
Another section of most credit reports is a listing of your open and recently closed accounts. Lenders will often report to the credit bureaus information about the amount, payment history, and status of accounts you have with them.
Why Is a Credit Report Important?
Your credit report is important because it is one of the sources of information that’s used to calculate your credit score. And your credit score can help determine whether you are approved for other financial products, like a credit card. If your credit score is too low, you may not be able to be approved for a new credit card or loan, and if you are approved, you may have to pay a higher interest rate.
Additionally, your credit report matters because many lenders will often refer to it when determining whether to approve you and under what terms. Sometimes, they may look at what’s known as a tri-merge credit report, which combines the three credit reports from each of the major credit bureaus.
Recommended: How to Avoid Interest On a Credit Card
How to Get a Credit Report
One good way to get your credit report is through AnnualCreditReport.com . This is a website authorized by federal law and brought to you by the three major credit bureaus.
You are able to get a copy of your credit report from each of the credit bureaus every year. Note that you can only get your own credit report to review — checking someone else’s credit report isn’t an option.
When to Get a Credit Report
It is a good financial habit to regularly review your credit report. As mentioned, you can get a free copy of your credit report each year from each of the major credit bureaus.
By reading a credit report regularly, you can make sure that there’s no inaccurate information on your credit report. If you have incorrect information, it could have a negative impact on your credit score.
What to Look For in a Credit Report
As you regularly review your credit report, there are a few common credit report errors you’ll want to look out for. These include:
• Typos or incorrect information
• Information belonging to someone with a similar name
• Closed accounts that are still marked as open
• False late payment
• Duplicate debts or accounts
Monitoring Your Credit Report
If there is any incorrect or erroneous information on your credit report, you’ll want to dispute that with the credit bureau. Disputing a credit report is a relatively straightforward process, and it’s an important one.
Generally, most credit report disputes must be submitted in writing, and it’s a good idea to send the letter via certified mail. That way, you have proof that the credit bureau received your letter.
Recommended: Apply for an Unlimited Cash Back Credit Card
The Takeaway
If you’ve been using credit cards, loans, or other financial products, it’s likely that you have a credit report with each of the three major credit bureaus. Your credit report contains identifying information about you as well as information about your open and recently closed credit accounts. Regularly monitoring your credit report and correcting any incorrect information is a good financial habit to have.
That’s because information from your credit report is used in the calculation of your credit score. Your credit score is used by potential lenders to decide whether they will approve you for new loans or credit cards. Having a good credit score makes it more likely that you’ll be approved for a new credit card, for example.
If you’re in the market for a new credit card, you might look at a rewards credit card like the SoFi Credit Card. With the SoFi Credit Card, you can earn cash-back rewards, which you can then use to invest, save, or pay down eligible SoFi debt. The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1
Take advantage of this offer by applying for a SoFi credit card today.
FAQ
Can negative information remain on my credit report for long?
Yes, negative information can remain on your credit report, even after you have closed your account. Most negative information will stay on your credit report for seven years, though some information (like bankruptcies) can stay on your credit report even longer.
How do I get my credit report?
You can get your credit report through AnnualCreditReport.com. You’re able to get a free copy of your credit report from each of the credit bureaus every year.
Who is eligible to view my credit report?
You can view your own credit report, but in most cases, you will not be able to check someone else’s credit report. The only time someone else can view your credit report is if they have a legitimate reason. This might include a potential lender that’s viewing your credit report to determine whether they want to extend you additional credit.
What errors might be present in my credit report?
While the major credit bureaus make every attempt to ensure that all credit reports are completely accurate, errors have been known to happen. Possible errors might include typos, accounts from someone with a similar name, duplicate accounts, or false late payments, among other errors. This is why it’s a good idea to regularly review your credit report and dispute any incorrect information.
What is the most important thing on a credit report?
Arguably all of the information contained in your credit report is important and worth taking the time to review. Perhaps most important is information on your accounts, as the details reported there have the potential to impact your credit score, and thus your borrowing opportunities.
Photo credit: iStock/Deepak Sethi
1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A. 1See Rewards Details at SoFi.com/card/rewards. The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. SOCC0223008
The 16-digit number on your credit card might remind you of the routing number you see on your checks or bank statements. But they aren’t the same.
In fact, there’s no such thing as a credit card routing number, even if it was issued by a bank or credit union. The series of digits you see on the front or back of your card is your credit card number, and it provides important information about the credit card issuer, the card’s payment network, and you (the card holder).
Read on to learn more about the differences between a routing number and a credit card number and why credit cards don’t need routing numbers.
What Are Routing Numbers?
A routing number is a nine-digit number used to identify a specific bank, credit union, or other type of financial institution in the United States. The American Bankers Association created routing numbers in 1910 to aid in processing checks. Routing numbers are still used today to help keep banking transactions secure, whether you’re making a direct deposit, an automatic bill payment, a wire or P2P transfer, or a phone payment.
Every bank has its own routing number — and some have more than one — that works kind of like a payment address. The routing number ensures the money from a financial transaction is correctly “routed” from one financial institution to another. Once the funds get to the proper financial institution, the money can then be moved into the designated bank account.
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Recommended: Routing Number vs. Account Number
Where Can I Find My Routing Number?
If you still use paper checks, and keep your checkbook handy, that’s probably the easiest place to look for your bank’s routing number. You should be able to find the routing number in the lower left corner of your checks.
The first nine digits are the bank’s routing number. After a gap, the next 10 digits are your account number. After another gap, the last few digits represent the number of the check you’re currently using.
You can also find your routing number by logging into your bank or savings account online. (If you have more than one account at a particular bank, your account numbers will be different, but the routing number for those accounts will likely be the same.) Or you can call your bank’s customer service line and ask for help getting the correct routing number.
If the checkbook or other bank paperwork you have is old, you may want to go online to confirm that the routing number you’re using is still current. Routing numbers can sometimes change, such as when two financial institutions merge, for example, or go through an acquisition. You should receive advance notice if that happens, but you may want to look just to be sure you’re using the most up to date routing number.
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Why Don’t Credit Cards Have Routing Numbers?
A routing number is used to move funds between two bank accounts — from your employer’s account to your checking or savings account, for example, or from your checking account to the electric company.
When you use your credit card, you aren’t depositing or transferring money. You’re borrowing money, and processing that transaction works differently. That’s why there’s no routing number on a credit card. Instead, the credit card issuer uses your credit card number to track your transactions and make sure they end up on your bill. The number also can help card processors identify the financial institution that will settle the payment when the card is used.
What Do the Numbers on a Credit Card Represent?
It’s important to note that your credit card number is not the same as your account number. Your credit card number includes your account number, but it has a few more digits. And each of those digits has a purpose.
Every credit card number is unique: If you apply for a credit card and you’re approved, the card you receive will have its own number. But most cards use a similar, formatted sequence that can be used to identify the card issuer, the payment network, and the account holder:
• The first number in this sequence typically represents the card’s payment network. Most credit cards start with a 3 (American Express), 4 (Visa), 5 (Mastercard), or 6 (Discover), as those are the major payment networks.
• The next five digits complete the card’s Bank Identification Number (BIN), or Issuer Identification Number (IIN), and can tell you about the card’s “issuer.” (The credit card issuer is the financial institution that gave you the card and manages your account.)
• The remaining digits — except, usually, the last digit — represent the cardholder and the account the card is connected to.
• And finally, there’s the “checksum” or “check digit,” which is used by card issuers and payment networks to catch errors and help protect against unauthorized card use.
Though this format may differ a bit from one card to the next — some card numbers may have 15 digits instead of 16, for example — all card issuers must follow a set of standards created by the International Organization of Standardization (ISO) and enforced by the American Network of Standards Institute (ANSI). This allows consumers to use their card or card number no matter where they are in the world.
Does a Debit Card Have a Routing Number?
Although a debit card is typically tied to at least one bank account, it does not have a routing number. Each debit card has a unique 16-digit card number that identifies the card issuer, the card network, and the bank customer and accounts to which it’s connected.
You read that right. While each credit card you own is linked to one specific credit account, your debit card may be linked to multiple accounts (checking, savings, etc.) if they’re at one financial institution.
How does the bank decide which account you want to use for each transaction? If you use your debit card to make a purchase, the money will be pulled from the account you’ve designated as your primary checking account. And if you’re using your debit card at an ATM, you should be able to see a list of all the accounts connected to that particular card, and you can make a deposit to or withdrawal from the account of your choice.
Your debit card will not be linked to your credit card account, however, even if it’s through the same financial institution. And even if your debit card has a payment network logo or hologram in the corner, you cannot use it as a credit card. The money will be withdrawn from your bank account, either right away or after a short delay.
Credit Cards vs Debit Cards
It can be useful to have both a credit card and a debit card on hand to help manage your finances. Though they look a lot alike, there are key differences:
Credit Cards
Debit Cards
Funds are borrowed from the bank.
Funds come directly from your own bank account.
You’ll pay interest if you carry a balance.
No interest is charged.
A credit card can help you build credit.
A debit card won’t help you build your credit.
A credit card can hurt your credit if you overspend.
A debit card can help you stay disciplined and avoid carrying debt.
You have access to cash when you need it.
You have access to cash when you need it.
Your card may offer rewards and discounts.
Most debit cards don’t offer rewards.
Each card is connected to a specific account.
One debit card can be linked to multiple bank accounts.
Recommended: Can You Use a Credit Card Like a Debit Card?
The Takeaway
Do credit cards have routing numbers? No. Though the routing number on your checks and the number on your credit card may look similar, they serve different functions.
A routing number helps ensure a payment comes from or goes to a specific financial institution, but it doesn’t contain information about the checking, savings, or business account the transaction is tied to. An account number is needed to make that happen. A credit card number, on the other hand, contains information about the card issuer, the payment network, and the card holder. It can help identify the financial institution that will settle the payment when the card is used, and it identifies the card holder who will ultimately be responsible for those charges.
Understanding the difference between these numbers — and knowing where to locate them when necessary — can help speed up your financial transactions and make them go smoother.
Looking for a new credit card? Consider a rewards card that makes your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt. The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1
Take advantage of this offer by applying for a SoFi credit card today.
FAQ
What is a routing number?
A routing number is a nine-digit number that identifies your bank or credit union in a financial transaction.
Does a credit card have a routing number?
Credit cards don’t have routing numbers. Instead, credit cards have a 16-digit credit card number that identifies the card issuer, the payment network, and the card holder.
Where can I find my routing number?
The easiest way to find your bank’s routing number is to look at your paper checks or a bank statement. The first nine digits in the lower left corner are the routing number. You also can log onto your account online or call your bank’s customer service number to get the correct routing number.
Photo credit: iStock/RgStudio
SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1 1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A. The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOCC0423009
When you set out to get a mortgage, you’ll find many options, from well-known banks to online lenders. Here are Bankrate’s picks for the best mortgage lenders, including borrower requirements — so you know which you might qualify for — and loan terms, so you can figure where you might get the best deal.
Best mortgage lenders
PNC Bank
PNC Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
620 for conventional, jumbo and FHA loans; 640 for USDA loans
Down payment minimum
3% for conventional loans; 3.5% for FHA loans
Where to find
Branch locations and online
Cardinal Financial
Cardinal Financial mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
580 for conventional and USDA loans; 550 for FHA and VA loans
Down payment minimum
3% for conventional loans; 10% for jumbo loans; 3.5% for FHA loans; none for VA and USDA loans
Where to find
Branch locations and online
NBKC Bank
NBKC Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA
Credit requirements
620 for conventional, FHA and VA loans; 680 for jumbo loans
Down payment minimum
3% for conventional loans
Where to find
Branch locations (limited) and online
U.S. Bank
U.S. Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
620 for conventional loans; 740 for jumbo loans
Down payment minimum
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
Where to find
Branch locations and online
Valley Bank
Valley Bank mortgage review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
Undisclosed
Down payment minimum
3%-5% for conventional loans
Where to find
Branch locations (limited) and online
Veterans United Home Loans
Veterans United Home Loans review
Availability
Available in all U.S. states
Loans offered
Conventional, jumbo, FHA, VA, USDA
Credit requirements
620 for conventional and VA loans
Down payment minimum
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
Where to find
Branch locations and online
Summary: Best mortgage lenders of May 2023
Lender
Credit requirements
Down payment minimum
Bankrate review
PNC Bank
620 for conventional, jumbo and FHA loans; 640 for USDA loans
3% for conventional loans; 3.5% for FHA loans
PNC Bank mortgage review
Cardinal Financial
580 for conventional and USDA loans; 550 for FHA and VA loans
3% for conventional loans; 10% for jumbo loans; 3.5% for FHA loans; none for VA and USDA loans
Cardinal Financial mortgage review
NBKC Bank
620 for conventional, FHA and VA loans; 680 for jumbo loans
3% for conventional loans
NBKC Bank mortgage review
U.S. Bank
620 for conventional loans; 740 for jumbo loans
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
U.S. Bank mortgage review
Valley Bank
Undisclosed
3%-5% for conventional loans
Valley Bank mortgage review
Veterans United Home Loans
620 for conventional and VA loans
3% for conventional loans; 3.5% for FHA loans; none for VA and USDA loans
Veterans United Home Loans review
How to compare mortgage lenders
Your first step to finding the best mortgage lender is to comparison shop. Borrowers who do more upfront research tend to save more money than those who go with the first lender they find. It’s best to get quotes from three lenders, at minimum. Because rates fluctuate frequently, it’s best to get these quotes on the same day so you have an accurate basis of comparison.
As you compare loan estimates, look at the APR (annual percentage rate) and interest rate quoted by each lender. Consider what’s important to you as far as experience, too. For some, how fast a lender can turn around a preapproval letter or close a loan is critical. If you have specific needs or financing preferences — for example, you want an FHA loan — you might also want focus on the top mortgage lenders who specialize in those products.
Once you determine what your needs and preferences are, get started by comparing mortgage rates and finding a lender in your area through Bankrate.
Current mortgage rates
Bankrate regularly publishes mortgage rates for purchases and refinances, based on its latest lender surveys. They include:
FAQ about mortgages
There are five main types of mortgage loans: conventional loans; jumbo loans; government-insured loans (FHA, VA and USDA loans); and fixed- and adjustable-rate mortgages. Conventional loans, offered by private financial institutions, are ideal for borrowers with strong credit scores. Jumbo loans are for higher-priced homes that exceed Federal Housing Finance Agency borrowing limits. FHA, VA and USDA loans are backed by the government and designed for borrowers with lower credit scores and low or no down payment, or military members (VA loans) or those buying in a rural area (USDA loans). Fixed-rate mortgages have the same interest rate for the life of the loan, while the rate on an adjustable-rate mortgage (ARM) can fluctuate.
Before applying for a mortgage, it’s important to bolster your credit score and savings and have a clear understanding of how much you can afford and what type of loan would best fit your needs. In addition, gather documentation about your finances so you’re prepared to complete a mortgage application when the time comes. Once you’ve taken these initial steps, begin comparing mortgage lenders based on factors such as annual percentage rate (APR), fees and your overall experience. It’s best to get rate quotes from at least three different lenders. When you know which lender you want to work with, get preapproved so you can start house-hunting with financing in hand.
The minimum down payment requirement varies based on loan type. If you qualify, you can obtain a 3 percent-down conventional loan, a 3.5 percent-down FHA loan or a no-down payment VA or USDA loan. If you want to avoid paying mortgage insurance, however, you’ll need to make a down payment of 20 percent.
Methodology
To determine the best mortgage lenders, Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Based on this methodology, the best mortgage lenders generally have a Bankrate Score of 4.9 stars or higher. Note: The Bankrate Score considers a mortgage lender’s products and services only; it is not a reflection of a lender’s internal operations or practices.