# High Interest Returns

Written by Genevieve Hawkins

If you have been careful about saving your money, it is likely that you are looking for some way to invest that makes your money work for you. Because savers are never rewarded as much as debtors are penalized, such avenues can be more difficult to find, and duplicitous schemes abound. But if you are careful, it is possible to find some high interest returns on your investments.

## The Rule of 72

This is a basic way of understanding how your money works, or at least how good of an interest rate you have--it tells you how long it will take your money to double. Anything under ten years can be considered a high interest return, despite what astronomical claims may abound. Keep in mind that faster returns may equal a higher risk of no return.

For example, if I were to invest one thousand dollars into a bank savings account at a rate of three percent interest, I would divide 72 by three to get 24, which means it would take 24 years of doing nothing before I had two thousand dollars. If I had invested that same one thousand dollars on an Illinois Tax Lien Certificate for 36 percent interest, I would divide 72 by 36 to come up with two, or two years to make two thousand dollars. As you can see, there is quite a difference depending on interest rate.

To find the highest rate yields, eyeball the interest rate (anything over 10 percent is good) and use the rule of 72 to get an idea of what your money is doing. Be careful of schemes claiming ridiculous returns, however. It is best to remember the axiom--if it sounds too good to be true, it probably is.