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July 25, 2023

Is your checking account balance looking a little wilted despite maintaining a minimum balance? The place you plant funds to cover everyday expenses might lack the necessary nutrients to thrive in today’s economy. Mistakenly thought to be available only to wealthy individuals, a high-yield checking account could be the fertilizer your finances need to flourish. 

What Is a High-Yield Checking Account?

A high-yield checking account is like a traditional one in that it offers a safe place to deposit funds to pay bills and everyday expenses. But the interest paid on deposits sets them apart from their sister accounts. For example, the eLife Checking Account allows you to earn 29.4x the interest most credit unions pay on traditional checking accounts. 

However, account holders must meet transaction requirements to qualify. These include eStatement enrollment, a minimum number of monthly  debit card purchases, and making at least one direct deposit, ACH transaction, or online bill payment during the statement period. Such accounts are ideal for individuals who prefer to keep most of their funds in one place.

Benefits of a High-Yield Checking Account

High-yield checking accounts help your money work harder without sacrificing the conveniences associated with a traditional checking account. Even with limited qualification requirements, the advantages make these accounts worth it. Such benefits include:

Security – Accounts opened at an insured financial institution are federally insured, up to $250,000. If the bank or institution fails, you can rest easy knowing you won’t lose your money.

Low cost – Opening deposits, minimum balance requirements, and service fees vary by institution but are often waived, letting you start earning on your balance right away. ATM rebates (up to a certain dollar amount) and access to surcharge-free ATMs help ensure you keep more of the interest earned on your account.

Ease of access – Use online and mobile banking to manage your finances. Like traditional accounts, funds can be deposited from your employer or another entity, withdrawn using a debit card, or transferred to another account at the same institution.

Overdraft protection – Some high-yield checking accounts let you select this optional coverage, which will process a transaction even if there are not enough funds in the account. Fees apply.

More perks – Financial institutions might offer extra features, like free ID theft restoration services, making the decision to open a high-yield account even easier.

Should You Open a High-Yield Checking Account?

It’s hard to imagine a situation where these low-risk accounts wouldn’t improve a depositor’s finances. However, if you’re unable to meet the monthly requirements of the account, it might not make sense to open an account right now. For example, if you are unwilling to use a debit card to pay for the minimum number of purchases per month, every month, you won’t experience the full benefit of the account. Not meeting account requirements too often could cause you to miss out on substantial interest earnings.

Revive your finances and watch them bear fruit with the addition of a high-yield checking account such as HawaiiUSA’s eLife Checking Account. With no setup fee or minimum balance requirement, sow seeds for an improved financial future.