Contrary to popular belief, there are still a number of banks that offer high yield checking accounts despite the recent economic meltdown.
These rates can be as high as 2 percent while the average is less than 0.06 percent.
Although you must abide by certain rules if you want to use the high yield checking accounts. Usually banks only give this benefit to people who have direct deposits and use a debit car often.
This is so the bank can still make a profit off a costumer despite this high benefit because of their constant use of their services. If a person just lets their money sit in a bank then the bank will lose money per costumer.
You will have to look past the larger national banks in the country and more at the local.
Smaller banks are the only ones that still offer such great deals for their services.
Before you open a new high-yield checking account, consider these four warnings.
– Your Rate Can Change at Any Time
The interest rate on your high-yield checking account is not part of a long-term contract.
While some banks and credit unions are offering above-average yields, every high-yield checking account comes with a dreaded disclaimer: Rates are subject to change.
– Accounts Carry Many Requirements
Unfortunately, you can’t simply park your cash in a high-yield checking account and watch it grow.
– The Sky Is Not the Limit
While the Federal Deposit Insurance Corp., or FDIC, insures bank accounts up to $250,000, high-yield checking accounts pay accelerated rates on a much smaller portion of those funds.
– The Interest Rate Isn’t Everything
The interest rate may seem like a golden ticket to additional income, but your banking relationship relies on more than earning easy money.