In 2007, you could put your money into a high-yield savings account and get a whopping 6 percent! Yes, that's right, 6 percent a year for your money (Money Under 30). According to the FDIC, the national average interest rate on savings accounts currently stands at 0.05% APY (smartassest). High-yield checking accounts are the new savings accounts. Banks are offering a little more that 4% return rates on account balances for certain checking accounts. Deposit Accounts by Lending Tree allows you to search for high-yield checking accounts by state, zip code, or city.
What are the pros and cons of high-yield checking accounts. You decide:
The accounts will not likely be in a city near you. You will most likely have to bank online. The accounts have monthly deposit requirements. The accounts have minimum debit requirements. The accounts are insured in some form. You can meet most of the deposit requirements by shopping as you normally do.
The accounts are attractive to those who do not mind backing online. The accounts are attractive to those who do not mind meeting the monthly bank requirements. Sites like Reddit provide resources that can help individuals meeting monthly requirements. Having a high interest checking account is like have a 4% liquid zero risk investment.