6 Easy Ways To Earn Compound Interest Daily in 2022

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

How would you love to invest your money and let it grow limitlessly in 2022?

Sounds like a plan, right?

In this article, I will show you 6 easy ways to earn compound interest daily on your money.

Think of it as letting your money work for you while you reap the benefits.

If you don’t already know, compound interest is the secret ‘sauce’ the richest 1% deploys to multiply their net worth.

How is that so?

Well, compound interest is the interest on a deposit or a loan.

Unlike simple interest, compound interest is calculated based on both the accumulated interest and that initial principal.

Think of it as the ‘interest of the interest and the interest of the principal investment.’

Do you see the big picture now?

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

That is the secret you need to grow your money at an accelerated rate than the simple interest which only takes into account the initial principal amount.

For example:

Say you have KES 10,000 in a savings account that earns 5% interest annually.

In one year, you would earn KES 500, giving you a total of KES 10,500.

In two years, you will have earned 5% on the larger balance of KES 10,500 giving you KES 11,025.

What happens if you leave that for 10 years at the same compound interest rate?

You will end up with KES 16,470.09. That is a growth of at least 6K in 10 years!

See the magic power of compound interest?

Now, what if it was compounded daily?

Here are some ways you can earn compound interest daily in 2022.

  • Certificate of deposits

What is a certificate of deposits?

Also commonly known as the CD, a certificate of deposit is a special kind of savings account.

You deposit your money into this savings account and promise (agree) not to make any withdrawals for a specific period of time.

Once that period elapses, you get your money back plus all the interest it accrued over that period.

How to get started with a certificate of deposits kinda investment.

You may consider taking this investment opportunity if you have some cash lying around that you won’t need for some years to come.

Maybe you want to save to buy a car, a new home, or for that vacation.

In such a case, you would be better off staying away from the stock market or bonds because you can lose the money within that period.

Or maybe you want some portion of money stacked away safely in a conservative environment away from the madness and volatility of the stock market, then a certificate of deposit is your option.

To get started, virtually every bank and credit union offers this investment opportunity.

As such, you can take a walk to your nearest bank branch and ask to look at their terms of offers.

  • High-interest savings accounts.

Also known as high-yield interest accounts, this is a type of deposit accounts you can find both online and in your local bank branch.

Unlike the typical savings accounts, the high-interest savings accounts often come with attractive interest rates and better returns.

So what’s the catch?

Well, to keep earning significantly, you are required to keep your savings account and checking accounts at different institutions.

If you are used to operating both accounts from the same bank, this will definitely feel awkward at first.

Sportsbook
Features
Bonus
Rating
REGISTER
1
  • Trade with $1
  • Earn up to 90% profits
  • Easy deposits
  • Fast withdrawals
Make up to $1000 daily. Sign up to get started.

But thanks to the availability of electronic transfers between banks, you can easily and swiftly move your money from bank A to bank B.

If you are considering this easy way to earn compound interest daily, here are some tips to get one:

  • The interest rate – are the rates you are given the standard or just for promotional purposes? You should understand it because the latter will be available for a specific period.
  • How much money is required to open such an account? Are you comfortable with it?
  • Minimum balance required
  • Are there any fees for running the account? How can you avoid it? For example, keeping your account balance above the threshold.

2. Bonds

This is one of the best and easy ways to earn compound interest daily.

It is a type of fixed income instrument representing a loan made to a borrower (mostly the government or company).

Think of it as an I.O.U. between the lender (you) and the borrower (government). It includes crucial details of the loan and the payments.

With bonds, you are simply agreeing to give your money to the borrower for a specific period of time. And when that period is over, you get the value of the bond back.

Additionally, you receive a coupon (the interest rate you agree on) annually.

Here are some types of bonds:

  • Government bonds – these are a type of bond issued by the Kenyan Government Treasury. So, there are three categories here, the ‘Bills’, which are issued by the Treasury and takes a year or less to mature. And then there are the ‘notes.’ These take anything between 1 to 10 years to mature. Finally, there are those bonds with over 10 years maturity period, called ‘bonds.’
  • Corporate bonds. Issued by companies instead of borrowing loans from the bank.
  • Agency bonds – issued by government-affiliated institutions
  • Municipal bonds – issued by municipalities and states.

Additionally, you may see foreign bonds being offered by the government.

3. Stocks

Stocks are a type of investment where ordinary people get to take part in the ownership of the most successful companies in the world.

When you buy stocks, it means that you now own a share of that company.

On the flip side, stocks are a way for the companies to raise capital for running projects, stirring growth, and powering other initiatives.

Now, being the owner of the company, you are entitled to part of its assets and earnings.

This is determined by the number of shares you own relative to the total outstanding shares available.

For example:

If company XYZ has 2,000 stock shares and you buy 200 shares, you now and have claim right to 10% of the company’s earnings as well as the assets.

As such, owning stocks is one of the easy ways to earn compound interest daily.

It means that when the company declares profits, you get your share in form of dividends.

Now, the more shares you own, the higher the amount you earn.

4. Treasury securities

Treasury securities include investment options like bills, notes, and bonds.

So, when you buy the Kenyan Government Treasury security, you are simply lending your money to the central government, who in turn promise to give it back plus interest after a specified period.

These Treasury securities are what we covered in bonds. And they all come with different maturity periods.

So depending on your goals, you can go for any.

For example:

If you want to ride the compound interest magic for a longer period, consider the ‘bonds.’ They take at least 10 years to mature, thus giving you high yields.

5. REITs

Also known as Real Estate Investment Trust, REITs is a special investment opportunity for anyone seeking to invest in properties but doesn’t have enough money or don’t want to own real estate.

This opportunity allows you to leverage income-generating real estate by partaking in the ownership.

So what happens is that you buy shares stock of a company that owns and operates income-producing properties.

This means that you will be earning dividends through the company assets and earnings.

REITs are one of the easy ways to earn compound interest daily because you don’t have to worry about managing properties.

6. Rental homes

But if you want to participate fully in running income-generating properties, you should consider rental homes.

Here, you either buy a home and lease it on the market. This way, it will be earning you income monthly.

The alternative way is to start from scratch by constructing rental homes.

The secret is to target growing neighborhoods close to campuses. Construct single-family units or bedsitters and set affordable rental fees.

Also, make sure your properties have enough security and a constant supply of water.

Wrapping up

Compound interest is the surefire way to let your money work for you.

Consider these ideas to start making money while you sleep.

Kenn Omollo is an investment writer and a business management consultant at Joon Online Limited. Reach him at - kenn@joon.co.ke

Comment on this post