Comments on: 6% APY Online Checking: Too Good to Be True? http://www.onlinesavingsblog.com/2008/03/12/6-apy-online-checking-too-good-to-be-true/ Personal finance, online finances, and more. Fri, 21 Nov 2008 10:45:39 +0000 http://wordpress.org/?v=2.6.3 By: tightwad http://www.onlinesavingsblog.com/2008/03/12/6-apy-online-checking-too-good-to-be-true/#comment-752 tightwad Fri, 14 Mar 2008 22:38:59 +0000 http://www.onlinesavingsblog.com/2008/03/12/6-apy-online-checking-too-good-to-be-true/#comment-752 Like the above poster commented, the high rate checking products are slowly showing up all over the country and do seem to be holding up well. A few have dropped, but most are keeping their rates up. I just took the plunge on a local deal through a credit union that I have a couple cd's with. The rate is lower than some national ones (5%) and their max deposit for the high interest is lower than most (15,000). They have however, kept their rate unchanged for almost 8 months. If it goes well and I can get into the habit of using my debit card enough to get the high rate, I may look into an out of state deal that pays more. I do think these products are a very good deal for people who do most of their purchasing and bill paying electronically. Banks seem to make money on ACH transactions and they say they retain customers better with these accounts, so they can afford to pay the bigger dividends. Only time will tell if they will continue, but they are the best thing going right now for savers with less than 25,000 socked away. Like the above poster commented, the high rate checking products are slowly showing up all over the country and do seem to be holding up well. A few have dropped, but most are keeping their rates up.

I just took the plunge on a local deal through a credit union that I have a couple cd's with. The rate is lower than some national ones (5%) and their max deposit for the high interest is lower than most (15,000). They have however, kept their rate unchanged for almost 8 months. If it goes well and I can get into the habit of using my debit card enough to get the high rate, I may look into an out of state deal that pays more.

I do think these products are a very good deal for people who do most of their purchasing and bill paying electronically. Banks seem to make money on ACH transactions and they say they retain customers better with these accounts, so they can afford to pay the bigger dividends.

Only time will tell if they will continue, but they are the best thing going right now for savers with less than 25,000 socked away.

]]> By: Ken http://www.onlinesavingsblog.com/2008/03/12/6-apy-online-checking-too-good-to-be-true/#comment-746 Ken Thu, 13 Mar 2008 18:14:40 +0000 http://www.onlinesavingsblog.com/2008/03/12/6-apy-online-checking-too-good-to-be-true/#comment-746 These reward checking accounts have been popping up across the country over the last year. Their rates have been dropping, but they haven't fallen as much as the online savings account rates. There's another big catch besides debit card usage. That's a balance cap that can earn the top yield. The typical cap is $25,000. I have an overview of these accounts and a discussion about their future @ http://bankdeals.blogspot.com/2007/11/high-yield-reward-checking-account-news.html These reward checking accounts have been popping up across the country over the last year. Their rates have been dropping, but they haven't fallen as much as the online savings account rates.

There's another big catch besides debit card usage. That's a balance cap that can earn the top yield. The typical cap is $25,000.

I have an overview of these accounts and a discussion about their future @
http://bankdeals.blogspot.com/2007/11/high-yield-reward-checking-account-news.html

]]>