Top 10 checking accounts with highest interest rates
Lately, many investors (and BankVibe readers) have opted to swap traditional CD’s (certificate of deposits) for Rewards Checking Accounts or “high interest bearing checking accounts.” The reason is simple – Better Interest Rates.
In the past, individuals on the hunt for conservative (FDIC insured) investments flocked towards CD’s because of their relative safety and lucrative returns. Today, CD’s are yielding rates lower than most people have ever seen which leaves these same individuals searching for alternatives.
I have included two charts below illustrating the competition of rates among CDs and Interest checking accounts. As you can see there is a clear superior.
Compare the above rates with the following 12 month CD rates. Keep in mind the following CD rates are available nationwide, whereas the “Interest Checking Accounts” above have geographical restrictions.
[table "0" not found /]In all instances the interest checking accounts have accompanying rates that simply demolish the annual yields of 12 month CD rates. And if you take a look at some of the comments BankVibe readers have left regarding the interest checking accounts you will see that some people are simply using these accounts as savings/deposit accounts rather than having them function as checking accounts.
Pay Attention to the TERMS AND CONDITIONS
I cannot stress this enough. None of the mentioned checking accounts above come without strings attached! In most cases you must make regular purchases via a debit card (usually between 10-20 per month) to keep your savings rate active. You must also set up recurring monthly withdraws (ie auto payments, utility payments, etc) and receive E-Statements or your advertised savings rate may drop as well.
If you abide by the terms and conditions of these accounts, then achieving their rates is pretty easy, but it takes a pro-active approach each month.
BankVibe readers also suggest that these are simply teaser rates which draw you in to their bank and require you to open additional accounts. In most cases, this is a valid argument, however if you max out the allowed balance you still stand to make a healthy return.
March 10th, 2009 at 12:22 am
Good post, very informative. One thing to keep in mind is that a lot of those banks or credit unions offering high rates on checking accounts are hurting very badly financially. Don’t be surprised if the FDIC ends up paying you rather than those banks or cu’s.
March 10th, 2009 at 2:15 am
Thanks for the informative post. It is hard to find any decent returns on your cash these days. I would be cautious with rewards checking accounts these days, as their rates could drop as well.. My rewards checking account APY dropped from 6.01% in January to 4.01 % as of now..
March 10th, 2009 at 11:43 am
Yea I like these types of accounts too, but watch out they are tricky about suddenly changing the rates on you. but atleast they usually only drop 1 point at a time.
March 10th, 2009 at 11:47 am
A lot of these banks use CheckingFinder.com to verify a person in order to open the account with the institution. CheckingFinder’s 866-895-5805 phone number turned “disconnected” as of approximately 11:15 am PST. It was working as of 10:50 am PST today. I called Verizon and they show it as disconnected. It is very disconcerting that a business that takes very personal information to verify identity has their phone number disconnected. It still shows this number on the website. I spoke with a person “Jen” at CheckingFinder yesterday in the PM and she was to get back to me by today. Haven’t heard a word. Anyone know what’s up?
March 11th, 2009 at 10:41 pm
I just have to wonder if these accounts are worth the hassle. It seems like a lot of work to make sure you will meeting the qualifications for the real risk of having your rate dropped one month later. Then you have to start all over again. The rates are simple teasers to get your $ in the door.
March 12th, 2009 at 9:27 pm
Hey Craig,
Thanks for posting regarding CheckingFinder.com. Their site has been a useful resource in finding these lucrative checking rates. I have heard that is there specialty
I am curious, do you sign up with checkingfinder.com or do you sign up with the actual bank or credit union offering the rate?
March 16th, 2009 at 7:58 am
@Craig-The phone number you have for CheckingFinder.com is incorrect. This is the number listed on the site: 1-866-531-9286 or email Support@CheckingFinder.com
@BankVibe-You sign up online through CheckingFinder.com but with the actual bank or credit union. That being said, you could also sign up through the physical bank/credit union as well.
March 16th, 2009 at 7:59 am
Hope this helps! Please let me know if I can be of further assistance.
Best,
Erik (CheckingFinder.com)
March 16th, 2009 at 11:17 am
Erik,
That helps a ton! Thanks for stopping by.