High yield or high interest checking accounts are checking accounts from online banks that offer interest payments if you follow some basic rules. Following the high interest checking account guidelines will earn a dividend on your balance, where traditional accounts might not earn you a penny. They are very beneficial, especially now when trying to make your money work for you in a slow economy, and are easy to open and manage.
Here is a break down of the top four requirements to earn high yield earnings:
1. Make Purchases Using High Yield Debit Card
The majority of Americans use their debit cards to pay for things, even a pack of gum. Most online banks will require you to make a minimum amount of purchases using your debit card – again, something easy to do. Try this trick: Use your debit card to buy an item you buy everyday, like coffee or lunch for example.
2. Set Up Direct Deposits into the High Yield Account.
Call your employer and see if they participate in direct deposit, which allows your company to deposit your paycheck directly into your bank, instead of giving you a physical check. Most employers are already set up to do so. If you have direct deposit already, have your employer switch it into your high yield checking account.
3. Use Bill Pay with the High Yield Checking Account.
Bill Pay is a service that allows you to pay your bills online through your checking account. The best way to do this is to choose one regular bill, like you’re water or electricity bill, and link it to your account with automatic payments. This way you know your major bill is being paid, and that you are satisfying your high yield checking account requirements.
4. Log-in and View the High Yield Account Regularly.
The majority of Americans do check their bank statement at least once a month, and this includes all of their other statements (credit, insurance, loans etc.), so how hard or inconvenient can it really be to check an online account? Check it everyday, and you’re done. One more hoop completed.
What Happens if High Yield Account Requirements are Not Met?
If these conditions are not met, then the customers won’t get the rate of return they signed up for. In addition, the default can drop to as low as 0.5% from 5% -6%. This is a huge drop if you just forget to check your account that month. This is much like how a credit card can default from an intro rate to an astronomical rate, the only difference is that low interest earnings on your checking account will only affect your earning potential and nothing else.
To look into high yield checking accounts and find one that is right for you, go to bankrate.com