What’s the Right Type of Checking Account for You? Find Out Here
Today, checking accounts are basically required for most of us to obtain, transfer and spend money. Fortunately, you can easily open a checking account online without having to meet a lot of requirements. But with so many options out there, how do you know which one is best for your unique needs?
Read on to learn more about the best checking accounts, whether you’re looking to earn interest, avoid fees or get rewards and bonuses.
Want to earn while you save money? High interest checking accounts (also known as high yield checking accounts) are a popular choice with beginning investors. The best high yield checking accounts have a few benefits:
- They have a higher annual percentage yield (APY) than a traditional checking account.
- They may come with no or low minimum balance and no fees.
- It is easy to deposit and withdraw funds.
The highest APY for checking accounts is usually around 2 percent. This means that if you deposit $10,000 in a high interest bank account, you’ll have around $10,200 after a year. With a traditional checking account APY of .01 percent, you would only make $10,001 after one year.
You can now find online checking accounts with high interest rates to help you easily manage your money from your phone or computer.
According to experts, Charles Schwab checking accounts are among the best for investors looking for a high interest rate.
Tip: If you have a job and open a high yield online checking account, you can ask your employer to deposit a portion of your check into the account. Over time, your savings will grow and you’ll earn more money from interest.