Conveniently pay bills, cover daily expenses, withdraw cash, fund hobbies and entertainment- all while putting interest earnings back into your account. Traditional checking accounts are a great place to store money but don’t typically offer interest. Combine the convenience of a checking account with the perks of a savings account and earn higher-than-average interest. Keep reading to learn the many benefits of high-interest checking accounts, how they work, and how you can start saving faster.
What Is a High-Interest Checking Account?
An interest-bearing checking account functions similarly to a standard checking account with the added perk of earning interest. As an account holder, you can perform all the same tasks you are used to with a standard checking account—make debit card transactions, deposit or withdraw money, pay bills, and access your funds as often as needed—all while earning interest.
Why choose a high-interest checking account over a standard checking account? The advantage is in its name. This type of checking account is classified as a high-interest or high-yield account because it offers an above-average APY (annual percentage yield). On average, the national deposit rate for an interest checking account is less than 1 percent. A high-interest checking account like the Capital CU ChaChing™ account rewards account holders with a higher APY.
How Does a High-Interest Checking Account Work?
Each high-interest checking account works differently depending on the financial institution you choose to bank with. Consider checking your current bank or credit union’s rates to see if their rewards account offers the best APY. If not, it’s time to shop around for the best rates. Look for an account with perks you can count on and conditions that are easy for you to meet.
Most high-interest checking accounts have some minimum conditions to meet in order to earn the highest APY and additional rewards. For instance, you may need a certain number of monthly debit card transactions or ACH direct deposits. Many of these conditions you are probably already doing, so it’s easy to qualify. Chances are you are already signed up for digital banking, receiving eStatements, and logging into your online account once a month. If so, you are already on the road to earning the highest dividend rates available. All that is left is to compare the terms and apply for an account. Make sure to compare interest rates, balance requirements, and additional fees.
Find an account that works for your financial circumstances and is easy to qualify for. Apply online or in person and start saving now.
The Benefits of Opening a High-Interest Checking Account
With a high-interest checking account, such as Capital Credit Union’s ChaChing™ Checking account, you can enjoy a host of rewards with a few easy steps. Earn high dividends, among other rewards, while keeping your money safe and easy to access. Enjoy convenience and savings all in one account.
You can maximize both savings and convenience with a high-interest checking account. Many high-yield savings accounts don’t allow for easy access. For instance, you may have to wait up to three business days for your money to become available. There are even more limitations with other saving options, such as money market or certificate accounts. When you need your money and you need it fast, these types of accounts don’t make the cut.
Conversely, standard checking accounts offer convenience without the ability to grow your money. You can withdraw and deposit money as you need it, but your money does not earn interest while sitting in a traditional checking account.
A high-interest checking account offers the best of both of these. Access your money without limitations while earning dividends.
In addition to high annual percentages and easy access, your money is protected by the Federal Deposit Insurance Company (FDIC) or National Credit Union Association (NCUA) for up to $250,000 per account. Bank confidently knowing that your money is safe.
With a high-interest checking account, you can also receive ATM fee refunds up to a certain amount each month. When you bank through a credit union, you might even avoid fees altogether by visiting shared branches and ATMs within their network. However, when ATM fees are unavoidable, don’t fret; enjoy nationwide ATM refunds of up to a certain amount each month.
Keep what is yours and bank without added service fees or minimum monthly balances when you choose the right account. Though fees vary depending on where you bank, credit unions typically charge fewer and lower fees so you can save even more.
Earn Even More With a Capital Cha-Ching™ Checking Account
When you open a ChaChing™ Checking account through Capital Credit Union, you can receive all the above perks and more. Qualifying is simple. Earn the highest dividends available simply by:
- Signing up and receiving free eStatements
- Making one ACH direct deposit of $400 or more per month
- Completing 12 $5 debit card purchase transactions each month
That’s it! Three easy steps, and you are on the road to earning higher dividends and receiving ATM refunds. If you don’t meet the requirements for one month, don’t worry. You can easily get back to earning next month.
Plus, as a member of Capital CU, you can expect to benefit from:
- Loan rate discounts
- Optional overdraft protection so you don’t get dinged when funds are insufficient and need to be transferred from your backup account
- Convenient digital banking so you can access your accounts anytime, anywhere
- Automatic payments with Online Bill Pay so you can pay your bills on time and avoid late fees
- No monthly service fee or minimum balance requirement
