Premium Checking Accounts: Are They Right For You?

Most people start out with a basic checking account that earns a relatively small amount of interest and comes with minimal fees. However, as your financial life begins to become more stable, you may wish to consider upgrading to a premium checking account. Below you will learn more about the requirements that come along with these prestigious accounts, as well as the benefits that they have to offer. Taking the time to review this information can help you to determine whether or not a premium checking account is right for you.

Account Requirements

While the exact account requirements will vary from bank to bank, there are a few requirements that remain constant. For instance, all banks require premium checking account holders to maintain a certain balance in their account in order to continue receiving the benefits that these accounts offer. While the amount of this balance will vary from one bank to the next, it is quite common for banks to require a combined account balance of at least $20,000.

If you are unable to maintain the mandated account balance, you will be required to pay an account maintenance fee each month. While these fees may also be charged when using a basic account, the monthly fees associated with a premium account will be much higher.

In addition to your deposit accounts, some banks will also require you to maintain other types of accounts in order to keep your status as a premium account holder. For instance, you may be required to maintain a savings, investment, or mortgage account through the bank in order receive certain benefits associated with your premium status.

Account Benefits

The most notable benefit that comes along with opening a premium checking account is the higher interest rates which these accounts command. For many people, these high interest bearing accounts provide them with a way to make a decent return on their money without the risks that come along with traditional investments or the hassles which can accompany many long term banking products.

In addition to higher interest rates, premium checking accounts will also offer you the ability to enjoy many waived fees. For instance, some banks will waive the fees associated cashiers checks, stopped payments, wire transfers, out of network ATM withdrawals, and premium checks. Some banks will also waive fees associated with your other accounts, such as the monthly maintenance fee on your savings account.