In her article, Ann Carrns discusses a way for some consumers to gain high returns on their savings via high yield checking accounts. She begins,
In its annual review of high-yield checking accounts, the financial website Bankrate found that the average yield at banks and credit unions was 1.65 percent, while nearly a dozen yielded 2 percent or more. By contrast, the average money market account yields just 0.11 percent.
Bankrate’s analysis looked at a sample of 56 banks and credit unions in mid- to late February.
But only about half of the high-yield accounts are available to consumers nationally, and all come with lots of strings attached. Most, for instance, require direct deposit and at least 10 debit transactions a month to earn the highest rate. Other requirements may include agreeing to receive monthly statements electronically and paying bills online. And a few banks say they offer the accounts nationally but still require an in-person visit to a branch to open the account.
“This is not something that’s going to work for everybody,” said Greg McBride, Bankrate’s chief financial analyst.
For consumers who have direct deposit and use debit cards a lot, however, opening one of the accounts could be worthwhile since interest rates on savings accounts and certificates of deposit remain pedestrian. “All the more reason to be proactive,” he said, “ to make sure you’re getting the best return on your money.”
Click here to continue reading the full story: How to Get Better Returns on Savings
Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal