Are you loosing hundreds of dollars in interest each year? |
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By: Artur Chachuna Posted: 2009-12-06 06:22:48 |
| Most of us have savings accounts that earn interest. What many people don't know is that there are also safe, FDIC insured, interest-bearing online checking accounts. The yield on these checking accounts is actually higher than the yield on savings accounts at the local bank! So why not get the best of both worlds: the ability to write checks and earn interest!Since 2000 I've been using AmericanBank E-Checking (don't confuse this with Bank of America) as my main checking account. Back then they paid over 7% in interest! Now interest rates are depressingly low, no, they are pathetic everywhere! But thanks to our fiscal policy, inflation is likely to rise and interest rates on savings and checking accounts will, hopefully, soon follow.AmericanBank currently offers 1.25% APY on American E-Checking accounts (rate is as of December 2009). Over the 9 years I've had my AmericanBank checking account, I estimate I've earned between $2000-$3000 in interest!My direct deposits go into my AmericanBank account. I also have a free but no-interest checking account with a local bank, which I use to deposit non-direct deposit checks or cash. If I need to take out more cash than usual, before traveling for example, I transfer money online between the accounts for free.But there is an even better deal for high interest checking accounts from another veteran of online banking - Everbank. It offers online checking with even higher than Americanbank's APY - 1.52%! Everbank has no monthly fees and a minimum opening balance is $1500. Like AmericanBank, it offers ATM fee reimbursement of up to $6 a month. There is no reason to lend your money to the banks for free. Banks will not return your favor. So make all your money work for you, not for your bank. |
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