Invest Money And Earn High-Interest Rates – That’s How It Works

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Invest Money And Earn High-Interest Rates – That’s How It Works. Investors are creatures of habit: despite the permanently low current interest rates, they are not discouraged and hardly change their saving behaviour. More than 80% still trust the savings book and save in the existing account.

The Difference Between Interest And Returns

Interest = return? This is only partially true. Before investing money and focusing on high-interest rates, it is important to understand the difference between these two terms: Interest is just a subset of returns.


Interest describes the payment that savers receive for the transfer of credit – in short, the “rent” for capital. A modern money economy is inconceivable without this rent payment because nobody would have an incentive to make their wealth available to someone else.

The interest rate determines the number of interest payments. This is a percentage that indicates the “rent” for one year based on the capital employed. If the interest rate, amount and term are known, it is easy to calculate your interest income.


However, other types of returns promise significantly higher profits, such as price or currency gains and dividends.

A major difference between interest and dividend payments is that the former arises regardless of the debtor’s income and not only when corresponding profits are available. This means that interest payments for savers are considerably less risky and more predictable, and an important reason why fixed-rate bank deposits are still so popular.


In addition to the savings account, the overnight and fixed deposit accounts are still particularly attractive and safe investments in order to earn income by paying interest on bank balances, even if they are not very profitable at the moment.

Overnight Money

With overnight money, you leave a certain sum of money to a bank for an indefinite period of time (usually 1-12 months) at an interest rate that can change daily. On the other hand, you can access your savings at any time without having to comply with a notice period. If necessary, you can easily switch to a better offer at another bank.

Fixed Deposit

In contrast, the fixed-term deposit denotes a form of financial investment in which there are no changing conditions. The terms, the investment amount and the interest rate granted for it – the fixed rate – are already determined in advance.


Savers who are aware of the risk of loss due to a small savings account, overnight or fixed-term deposit interest rate are left with three options for investing their money and generating high-interest rates. Do you lack the capital that you can invest at high-interest rates? Use savings plans to start building your wealth.

1 | On The Overnight Money Market:

Look for banks that also pay relatively high-interest rates over the long term. The interest rate can fluctuate daily during the time of the investment in a call money account. The bank with the highest overnight interest rate is not always the best option in the medium and long term. Various factors determine the amount of fixed deposit interest. The limited availability, the duration of the period, the capital amount and country-specific framework conditions are essential influencing factors.

2 | Look Abroad

Also, there are specific conditions in the individual countries that can influence the interest rate level. The economic situation, the structure and competition in the financial industry, the need for credit and investment and savings behaviour. If you want to invest more good money, you should perhaps take a look abroad.

3 | More Risk-Taking Investments: Asset Classes With High Interest Rates

Securities: Anyone looking for a profitable investment cannot ignore stocks. However, one must not forget: return and risk are directly related. The higher one, the higher the other. In this case, it is worthwhile to diversify your investment capital across countries and industries to minimize fluctuations in value.

Equity crowdfunding: If you don’t just bet on the stock market, but still want high-interest rates on investments, you could look to crowd investing as an alternative investment option. In contrast to non-profit crowdfunding, the donors get their money back here, and the return is the focus.

Crowdlending: Together with crowd investing platforms, more and more credit platforms (crowdlending platforms) are emerging on which private borrowers and lenders can find each other. As an investor, you can also use the most high-interest loans as a high-yield capital investment. However, exceptionally high risks are to be expected here, as you can poorly assess the creditworthiness of your borrowers.

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