Tuesday, January 19, 2016

Tuesday Tip: Big Interest Checking Accounts

As we all know, the economy is not doing great right now. Finding bank accounts that earn decent interest, seems nearly impossible. Savings accounts are only getting a rate of about .10%. So what are your options for earning a lot more than that?
Several years ago, I started using checking accounts with bigger interest rates, just by completing a few requirements. They are sometimes called "Big Interest" or "High-Yield Interest" checking accounts; original, I know. I have a few of them through different banks/credit unions. Here's what you need to know:

- Interest rates: Used to be higher, but mine are now between .75 - 1.6%

- Amount limits: You can receive the higher interest rates only up to $10,000; $25,000; or $50,000; etc. depending on the bank, then the remaining balance earns a lower rate.

- You must meet the following requirements to get the higher interest each month:
     + Enroll in eStatements through online banking, and some require you to login-in to your account regularly, or keep a current email.
     + ACH deposits (usually 1-2) to your account (i.e. have your paychecks deposited into your account)
     + Use your debit card a certain amount of times (usually 10-12); some require they are POS transactions (meaning you have to use your pin).

This is a great way to earn some extra cash, but you have to be diligent in making sure requirements are met monthly. We have earned hundreds of dollars in interest using these accounts. If you are looking for a way to better-utilize your emergency fund money, this is a great option!

If you are interested, check with your bank or credit union to see if they offer this type of account. If they do, you can usually convert an existing checking account to the high-yield account. Go earn some interest!

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