While savings accounts and certificates of deposit are popular ways to earn interest on your money, high-interest checking accounts also offer a lucrative option to save.
Nowadays, finding a checking account with a high-interest rate is no longer a rarity, especially when you search for an account from an online bank. To help you locate the best interest rates available, here are five strategies that you should consider:
Research the Best Deals
When you start searching for a new checking account, it’s crucial to conduct thorough research. Interest rates can vary widely from one bank to another, so it’s essential to spend ample time learning about the different offers and types of accounts available.
Compare accounts from multiple banks and inquire about any additional incentives. Some banks may offer a higher interest rate for larger deposits, while others might waive fees when you choose to receive online statements.
It’s also wise to look for online reviews and testimonials about specific accounts before signing up. Choose a bank with satisfied customers and an account that suits your needs.
Be on the Lookout for Special Offers
As you investigate each bank’s interest rate, be sure to keep an eye out for special offers and incentives. Banks often run promotions and provide additional discounts that can significantly alter the terms of your account.
Many of these offers are available for a limited time and could involve extra requirements, so it’s crucial to act quickly when you discover one.
However, take the time to scrutinize the account’s terms before committing. Always keep abreast of deadlines, promotions, and agreements when you search for extra deals.
Choose an Account with Added Perks
If you come across multiple accounts offering similar interest rates, choose the one that comes with extra perks.
While you may receive the same rate from various banks, the benefits you get from a convenient online banking system or free ATM withdrawals can significantly impact the overall value of your account.
More and more banks are adding these additional features to their standard checking accounts to remain competitive with other financial institutions.
Look for benefits like a free debit card, electronic transfers, and direct deposit. Find out if your bank offers overdraft protection with your checking account.
While these extra features won’t affect your overall interest rate, they can save you money over time.
Make a Significant Deposit
Before opening a new account, determine whether a larger deposit can be beneficial. Many banks offer higher interest rates for accounts with larger balances, so it’s essential to deposit as much money upfront as you can afford to invest.
If you find that you’re a little short of reaching the next tier, you may want to hold off until you can deposit more cash into the account.
The higher interest rate you’ll receive on the entire balance could compensate for the amount of interest you’ll lose in the interim.
Consider Account Restrictions
Lastly, be sure to look for limitations and rules that could affect the interest rate you receive. Some banks require you to meet certain terms each month to receive a higher rate.
For instance, you might need to make a minimum number of transactions each month with your debit card or switch to online statements.
You may also need to maintain a minimum balance to earn a higher interest rate. To find a checking account with the most favorable interest rates, choose one with requirements and regulations that you can easily meet.