Reward Checking

Overview and Pitfalls of Reward Checking Accounts

Reward checking accounts are accounts that pay especially high interest on cash. You have the ability to use the cash just like regular checking accounts, but there are a few strings attached. You can get a great deal if you use a reward checking account, but you need to be aware of the tradeoffs.

Reward Checking Basics

Reward checking accounts pay a lot. You can often earn more than a long-term CD in a good reward checking account. Instead of earning nothing - like you do in most checking accounts - your money grows and you have easy access if you need it.

Qualifying for Reward Checking

The catch is that you have to qualify. In order to earn the higher interest rates in reward checking accounts, you may have to:

• Set up direct deposit into the account
• Get statements online - no statements will be mailed
• Use your debit card at least 10 times per month (that’s the hard one for some people)
• Open the account in person
• Login to the account at least once per month

Another hitch is that some accounts only allow you to earn interest on a portion of deposits (the first $25,000, for example).

Reward Checking Alternatives

If you don’t want to jump through the hoops, you can look at alternatives to reward checking accounts. Other bank accounts allow you to write checks against your deposits while earning a competitive return. These interest-bearing checking accounts often pay as much as savings accounts, so you still earn a good return without all the restrictions.

• Interest Checking Overview and Providers

Where to Find Reward Checking Accounts

The best reward checking accounts often come from smaller banks. A good resource for finding them is HighYieldCheckingDeals.com.