Starved for interest on your savings? If you use your debit card regularly, listen up. I’m Kristin Arnold with your Bankrate.com Personal Finance Minute.
Bankrate.com is out with their annual look at high-yield checking accounts and here with details is Greg McBride, senior financial analyst at Bankrate.com. Greg, these aren’t your run-of-the-mill checking accounts, so explain how they work.
“These accounts typically require 10 debit card transactions per month and either direct deposit or bill payment, in order to earn yields averaging over 2%. But that higher yield is limited, typically to $25,000.”
And how do those yields compare with other cash investments?
“At 2%, the returns are head and shoulders above the 1% or so on online savings accounts and dwarf the yield on money funds. But you must meet the requirements to earn the yield for that month.”
Some welcome good news for the starved savers out there. Thank you, Greg. For more information, go to Bankrate.com. I’m Kristin Arnold.