Consider maintaining a positive balance, paying a minimum amount monthly, being a student, and paying a fee when choosing a checking account with a high interest rate. Online accounts offer higher rates, and some banks offer bonuses or fixed monthly bonuses. Overdraft services and minimum monthly payments may affect interest rates. Student accounts offer overdraft services without fees or interest, and premium accounts offer additional benefits.
Some of the things to consider when choosing the best checking account interest rate are whether you always maintain a positive balance, whether you can pay a minimum amount each month, whether you are a student or recently graduated, and whether you are willing to pay a fee monthly. Online checking accounts often offer higher interest rates, so applying online is another easy way to earn higher interest.
The checking account market is very competitive and because of this, there are many offers available to consumers. In 2010, certain banks offered checking accounts with interest rates of up to 5% per year. Some banks even pay a bonus to consumers who switch their checking accounts from other banks, and some will offer a fixed monthly bonus instead of a percentage of interest. Certain banks offer higher checking account interest rates as long as you meet certain terms.
If you frequently overdraw your account, you should choose a package that offers overdraft service while offering competitive interest rates. If you choose a checking account that doesn’t offer overdraft services but has high interest rates, it’s usually in your best interest to avoid overdrafting. Bank fees and overdraft penalties are much higher than any interest earned.
Some banks require their customers to pay a minimum amount each month to qualify for the higher checking account interest rates. If you earn a monthly salary and can deposit your salary into the account, this may be a good option. Some checking accounts also offer an investment option and offer higher interest rates as long as a minimum balance is maintained.
Student checking accounts generally offer overdraft services without interest or fees, but the amount of protection offered and the repayment period varies widely from provider to provider. This is a useful option for those who need an overdraft and are in school or have just completed their studies. It also ensures a higher interest rate while having access to an overdraft facility.
Deciding if you’re willing to pay a monthly fee will help determine whether a standard or premium checking account will best meet your needs. Premium accounts offer additional benefits, such as free travel insurance or discounts. Standard checking accounts generally have no monthly fees, and higher interest rates are offered on account balances.
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