In this difficult economy, many people are considering high interest checking accounts as a possible way to earn higher interest rates on money deposited into their checking accounts. There are several benefits to opening up a high interest checking account, and there are several high interest checking accounts for you to choose from.
High interest checking accounts have no monthly maintenance fees and no minimum balances, much like with free checking accounts. The main difference between high interest checking accounts and free checking accounts is that there are a few stipulations in order for you to obtain that high rate from a high interest checking account.
The stipulations usually include the requirement of using your debit card at least 10 times during the month, access your online banking account at least once during the month, and make at least one monthly online bill payment, ACH debit, or direct deposit to your account. If you fail to meet these stipulations, your interest rate will be drastically reduced for that month, often down to 0.50% or even lower.
The tradeoff is that the banks will earn money on the fees that they charge for the debit card transactions. This is how the banks can afford to offer you the higher interest rates on your checking account balances. Your best bet to make the best of this situation is to spend a low amount on each of the required debit card transactions each month in order to meet the stipulation and still gain the higher yield on your checking account balance.
Many banks and credit unions are offering their own types of high interest checking accounts, but some banks and credit unions only allow people in their local area to sign up for them, so you need to shop around and see what high interest checking accounts are available to you.
It’s also important to note that high interest checking accounts can vary in terms of their conditions and rates from bank to bank. For instance, one bank may offer their highest interest rates on checking accounts that have at least $25,000 in them, while other banks may only offer their highest interest rates on checking accounts that have at least $50,000 in them.
Some of the banks that offer high interest checking accounts 2012 are listed below:
– 2.50% APY if you accept all statements electronically and make 10 Evantage VISA® CheckCard sales transactions each month.
Bank of the Wichitas® – 2.50% APY (for accounts with $10,000 or more in them) if you accept all statements electronically and make 10 Bank of the Wichitas VISA® CheckCard sales transactions each month.
First New England Federal Credit Union – 3.05% APY for Relationship Account Members or 2.029% APY for General Members on balances of up to $15,000 if you make 12 cleared debit card transactions with your checking account each month, set up one direct deposit or ACH Auto Debit to your High Interest Checking Account each month, and enroll in eServices with your checking account.
As you can see, you have several options to enroll in a high interest checking account. It’s important to keep in mind that in order to obtain the high interest rates with these checking accounts, you have to meet several requirements, often including accepting electronic statements, setting up 10 to 12 debit card transactions each month, and setting up at least one direct deposit or ACH deposit each month. If you can meet these requirements without difficulty, it may be of great benefit to you to open a high interest checking account.
Check out MoneyPoint Live Reviews of more Checking Account Options:
- Free Checking Accounts
- Online Checking Accounts
- No Deposit Checking (need to read fine print on these)