What to Look For in a High Interest Checking Account
Today it is hard to find a checking account that pays any interest at all. But if you look hard enough, you can still find banks that are willing to pay above average interest rates to either keep you as a customer or lure you away from a competitor.
Some smaller community banks are offering larger interest checking by having you use their debit cards at select merchants. You have to be careful when using these types of accounts. If you do not meet the required minimum purchases at these institutions, then you will get the minimum interest rate. You really have to keep track of your purchases with these accounts.
You will often find that the majority of the higher paying banks are strictly online banks with no branches. These banks are perfectly safe to do business with as long as they are FDIC insured. Always look for the FDIC symbol on their website. If you do not see the symbol, make sure you call the institution to verify they are a participating member.
Also, when you are searching for an online checking account, make sure to read the fine print that states the interest rate you will be receiving. Often time banks use teaser rates that are only good for a limited time, such as three or six months. After that the rate will reset to a lower fixed rate. It can be very annoying to go to the trouble of switching banks and reorganizing your bill pay and having new checks printed only to find out you are receiving the same or lower interest rate you had before.
Speaking of bills, make sure the institution you are considering offers free bill pay as one of their services. Most banks these days do offer it and if they don’t you can surely find one that does. Also, many banks these days offer you a free box of checks to make your transition to their facility even easier.
If you look hard enough you can find some excellent interest rates on checking. Some checking accounts pay more than the online savings accounts these days. If you are lucky, you may find a bank that offers a great rate on a savings account that also allows easy transfers to your checking account. That way you can get a higher rate on the savings or money market and move money into your checking whenever you need it.
