Interest Checking

October 3, 2009 No Comments »

Compare the best interest checking accounts below. Our two featured accounts are available nationwide and can be opened online. They are both FDIC insured up to $250,000.

Discover Online Money Market Account – #1 Rated Online Money Market Account featuring a 1.00% APY. Available nationwide.

- This account comes with a minimum deposit requirement of $2,500 and no annual fees.

- FDIC insured up to $250,000

Traditionally the highest APY earned on FDIC insured investments have come in the form of CD’s (certificates of deposit). However, since CD rates have been declining, other FDIC insured investments have come on the scene with much more enticing rates.

Interest checking accounts (sometimes called Rewards Checking Accounts) can be found in hundreds of locations throughout the country. They typically come with a phenomenal interest rate (between 3% and 6% APY) which can generally be earned balances up to a certain amount (typically $25k – $50k). They work similarly to money market accounts by providing easy access to your money while earning optimal interest rates on your overall balance.

They do, however, come with a few strings attached. The strings are almost the same with every bank and/or credit union. First, you must make a certain amount of transactions per month using this account’s debit card. This number ranges anywhere from 6 to 15. This is a fairly simple obstacle to overcome if you are willing to swap transactions that would have previously been made from your credit card to this account’s debit card.

Second, you must set up some form of reoccurring ACH transfer or automatic withdraw (typically in the form of a monthly auto payment).

And finally, you must receive E-Statements from the bank.

If you can overcome these 3 requirements on a monthly basis then you will be entitled to earn the high APY on your balance. You may want to also keep in mind that if you do not meet these requirements in any given month your interest rate will drop significantly (usually to 0.25 – 0.75% APY).

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