Cha-ching! Higher yields and reduced fees in your checking account mean more money in your bank account and in your wallet.
These six tips give you the scoop on how to get the maximum benefits from your bank checking account.
- Rewards checking accounts may offer ATM reimbursement. Some programs limit this benefit for high-yield account holders, or they may cap a limit on the reimbursement amount.
- Check out local community banks and credit unions for higher yields. In an effort to attract more depositors, these financial institutions often reward savers with better rates.
- Read all notifications from the bank to stay updated on your account terms. If the financial institution is lowering interest rates on your checking account, you will want that heads-up so you can look for other options.
- If you have a large sum stowed away in a high-yield bank checking account, be aware of balance caps. Beyond a certain amount, the remainder of an account balance isn’t subject to favorable higher rates. The most prevalent balance cap is $25,000.
- Avoid abusing your checking account’s terms. Some accounts may offer rewards in exchange for a minimal number of transactions each month. But using your debit card for several $1 purchases from the same vendor without other transactions will raise eyebrows.
- Make sure the traditional bank checking account is your best option. Some financial institutions offer a higher yield for customers who opt for paperless statements, direct deposit or online bill pay. Determine if you’re comfortable with the monthly account requirements.