Best way to get interest on money?
Answers:
The money you are talking about is living expense - that is your "liability" and it comes every month regardless of your financial plan. If you are going to take the money out of the saving account each month, then you may not accumulate enough interest.
There are many ways to invest money. It is more important to think what your goal is and how soon you want to see the return. http://www.fool.com/ has a lot of interesting articles.
It's never a good idea to get into credit card debt. Don't pay your bills on credit.
It's never smart to use your credit card if you have enough cash on your hands, though you can build up your credit by using your credit card and make payment on time, but if you really want a good saving account, I suggest you to open an online saving account (HSBC, Citibank), since that's only a dollar initial deposit, and most of the online saving account gives 4.95%-5.05% interest rate!
Good luck!
Say you can do this with all expenses except rent or house payments - let's estimate $1,000/month for gas, utilities, groceries, etc. If you're then able to keep an average $1,000 additional balance in the bank, and are able to get a 5% return on your money, then you'd make $50 per year in interest, or a little over $4 per month.
It can be done, but most people just don't think it's worth the effort for $4 per month. If, however, you're getting miles and/or points on your credit card (12,000 per year in this example), then it might be worth your while. My sister accumulates miles on business expenses, and then uses the miles to travel with her family every few years. Do the calculation - if you can make it worth your effort, and know that you'll never have a late payment, then go for it. Good luck.
A jenny mae account will earn you double what a regular savings account earns typically...and it's guaranteed by the same guarantees behind the banking industry. I can show you how to earn 24% interest on your investments if that's an option you're interested in.
I do something similiar to what you are asking
Set up your process:
Use a "normal" saving account and checking account.
-- direct deposit, pay credit card bills or odd ball items
Open high yield savings like ING, CapOne (links to checking, no min, online access only), even Etrade has one now
-- long term savings, transfer in/out only if needed or have extra money
-- current yields around 5%
Use credit card with free "Bill pay" features like Bank of America (was MBNA).
-- ALWAYS pay off balance or you will LOSE to fees and interest
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