What You Should Know About High Interest Checking Accounts
When you open a checking account at most banks you will realize one thing that it is great for your average banking of storing and spending your money but it won’t earn you any interest. Well after generations of banking being like this people are thinking that they should have some money earned for their money sitting with the bank and helping the bank to earn money all of the time. So now there is a new trend that is coming up to serve these customers which is high interest checking account. But one question is if they are all they’re cracked up to be. When you search for the high interest checking account the first thing that you will notice is the different interest rates and weird bank names come up. Well, there is first a reason that you don’t know the bank names and that is because they are all fairly new banks. These banks are also primarily online although some brick and mortar banks are starting to offer the accounts.
The next thing that you will notice is that you will only be getting one percent interest on the balance in the account which is not much but that is a lot more than what you were getting before. But what is not talked about until you get into the details is the extremely high account balance that you must keep in these accounts and the fees that are attached to them if you don’t have a balance that high. These accounts are far from free and for the average person they just don’t work out. On the other side of things if you want to keep close to ten thousand in your bank account on a regular basis then the account is no problem and you will actually earn quite a bit on the interesting side.
When you do go to find a high-interest checking account the first thing that you should do is to make sure all of the banks you look at are insured by the FDIC so that you know that money you put in the bank account is completely secure. After you make sure that the bank is secured then you can compare the account balance minimums and how much interest you are supposed to earn on the account. By doing your math you can determine if the bank account is really going to be a good thing for you or not. Overall it is great that banks are finally starting to give customers appreciation for using their services rather than punishing them for helping the bank to make money and using the money that they have. But on the other hand, these accounts are not going to work for everyone yet. If you can’t keep the account balance minimum then what you would earn is going to be eaten away in fees and you will likely be paying a lot more than the tiny bit of interest that the account would give you. Even if you have the money for the account the other thing you want to look at is if you really need or want that much in a checking account at one time anyway when it could earn more in a high-interest rate savings account that is all over the place right now among many other choices that still allow you to have access to the money while earning the interest you want.