How To Find High Yield Checking Accounts

How To Find High Yield Checking Accounts

2019/02/25

A checking account is a deposit account that provides you with quick access to your money. These accounts are typically held at banks or other financial institutions. These accounts are also referred to as demand accounts or demand deposit accounts.

Checking accounts neither earns interest nor are they meant for saving money. As long as customers have available funds in their accounts, they can withdraw any amount of money any number of times.

All checking accounts offer financial transactions history and reports through a bank statement or a passbook. The following are the ways in which a checking account customer can have access to their funds: Cash money, Cheque, Money order, Funds transfer, Direct deposit, Direct debit, Standing order (automatic funds transfer), ATM cards (debit card), and SWIFT.

As compared to typical Now accounts, the High-interest NOW accounts pay a higher interest rate. Although the interest rate has been cut 8 times since September 2007, there’s a small segment of the banking world like community banks and credit unions have been high yield checking accounts that carry yields as high as 6.10%.

These accounts are called reward checking accounts, while some prefer to call them maximum earnings accounts. With no monthly account maintenance fees, these accounts and the deposits in them are insured by the FDIC or the NCUA.

The only condition these high yielding checking accounts have is for the account holders to show a certain number of transactions every month.

Restrictions on these types of high yield checking accounts end up being quite a handful. Certain banks lower the high yield of the account considerably if account holders fail to meet account transaction requirements.

So keeping tab of these accounts becomes a hassle. Additionally, most reward checking accounts services are almost always provided to in-state residents. What this means is that if you are from state 1, you may not receive as high a yield as your cousin in a state 2.

Operational restrictions can sometimes adversely affect account holders. Most independent banks last a nation-wide network of ATMs for example. If you’re not careful, the fees you end up paying into ATM transactions could more than offset the high interest you get on your deposits.

However, there are banks that reimburse certain fees, including ATM fees, back to the customer. So, in your quest for a high yield checking account, remember the nuances involved in controlling it.

personal-finance

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