Interest rates on savings and other bank accounts typically play an important role for those trying to save money and plan for their future. Generally, higher interest rates on bank accounts result in more money in your pocket. Keeping that in mind, understanding how to maximize your earnings through higher interest rates is becoming increasingly important.

For those who are looking to make the most out of their money, understanding the positive benefits that come with higher interest rates can help you get ahead. Here, we’ll look at some of the more positive benefits associated with higher bank interest rates.

1. Higher interest rates make your money work for you.

When you have a savings or checking account set up with a higher interest rate, your money starts working for you in two ways. First, every dollar deposited into the account generates interest, and the higher the interest the more you’ll earn as the balance continues to grow. Second, with higher interest rates, your money will go further over time. This happens because the higher rate of return makes your interest rate increase every month, resulting in a larger balance and more earnings from month to month.

2. You have more flexibility in terms of investing.

Higher interest rates