Is a high-yield checking account worth it?
If you've been paying attention to the economy, you already know that inflation is problematic and that higher interest rates have led to elevated borrowing costs. So, not only are gasoline and food prices higher than they have been, but the price of using credit cards, personal loans and mortgages is also significantly elevated.
But here's something you may not have known: Interest rates on many bank accounts are also high right now, giving accountholders a rare opportunity to earn more on their money. In fact, it's not difficult to find an APY of 5% or higher right now on high-yield savings and certificates of deposits (CD) accounts. You can also, surprisingly, earn interest with select checking accounts. High-yield checking accounts, in particular, have multiple benefits that could be attractive for users now.
Explore your high-yield checking account options now and start earning more interest on your money.
Is a high-yield checking account worth it?
Here are three reasons why a high-yield checking account could be worth it for you now.
Greater interest rates
The most obvious reason why a high-yield checking account could be valuable for you is in the name of the account: high-yield. You can earn an APY of 3% to 5% on a high-yield checking account right now. That's many times the minimal 0.07% average available with a regular checking account.
So, if you continually have money coming in and out of your checking account, it's probably worth transferring to a high-yield checking account now in order to earn a greater return on your funds.
Earn cash back rewards with no fees by opening a high-yield checking account here today.
Ease of use
High-yield checking accounts are usually easy to operate and function similarly to your regular checking account. So you won't have to learn anything new or take any unusual steps with this type of account.
That said, it doesn't work precisely as regular checking accounts, either, so be sure to read the fine print before proceeding with this option. Namely, high-yield checking accounts frequently require minimum balances to be kept. The bank may also require a certain amount of transactions each month in order to keep your high-yield checking account active.
But, if you can meet these basic requirements, it shouldn't be any more difficult to use than your regular checking account already is.
Rates could rise again
The battle against inflation hasn't been won quite yet, and the Federal Reserve's target 2% goal remains out of reach as of now. That means additional rate hikes are likely to come, possibly as soon as November or December.
A higher benchmark interest rate will then mean higher rates on deposit vehicles like high-yield checking accounts, too. So by opening an account today, you'll start earning more interest now and be well-positioned to earn an even higher rate if the Fed moves them upward in the weeks and months to come.
The bottom line
A high-yield checking account can be valuable for many users right now. These accounts have higher rates than regular checking accounts and they're easy to use. Additionally, by opening one now, you'll be in a prime position to earn even more money if and when the Fed raises rates again. So don't hesitate. Start researching your high-yield checking account options here today.
