Gone are the days of simply walking into your local bank and opening a basic checking account. Thanks to advances in financial technology, you can open an account with a bank thousands of miles away. With variety comes the need to sit and view your basic banking accounts.
Back in the day, you would have your checking account and a savings account that offered you some small return. Now, there are hundreds of different products to consider. In this article, we'll help you determine which account is best for you.
Starting with a checking account, this is the one account nearly everyone has. This account is where your direct deposit goes, cash, and everything in between. While you can open a basic checking account with no dazzle, why would you do that?
Many accounts offer you rewards for spending. If you're a frequent swiper, look for a checking account that either gives you bonuses, travel rewards, or cash back for using your debit card. Like credit card rewards, debit cards are slowly increasing their reward structure to incentives spending.
Another data point to consider is high yielding checking accounts. With these accounts your money can be earning you more. Look at online banks such as Capital One, as they tend to have better deals on checking yields.
The other account you'll likely have is a savings. This account should be a part of your banking strategy because, for the most part, this money is sitting idly, earning you interest. With that, you'll want to search for a high yield savings account.
Yes, even in a lowering rate environment, you can find yields higher than 1.50%. While it may not seem like much, it's enough to ward off inflation risk and is much better than earning 0.05% at your local community bank. Be sure to understand the account requirements as some financial institutions have balance minimums to open and maintain if you wish you obtain a better rate.
Lastly, you'll want to find a bank account that has a broad ATM reach. Nothing's worse than needing cash and having to pay $5-$10 to access your hard-earned money. By having an extensive ATM network, you can rest easy knowing you'll have 24-hour access to your cash if needed.
These are a few items to consider when looking for a proper checking and savings account. Gone are the days of simple small-town banking, and in are the more rewarding accounts. Take a few minutes to research before committing. You might be surprised at what you find.