Investing Blog

Banks are getting creative with their advertising by utilizing a model that is half adopted from the mail in rebate idea. Some banking institutions are offering high interest, high yield checking accounts that pay as much as 4% on accounts greater than $25,000.

Reward Checking Accounts

You’ve heard of rewards on credit cards, but now checking accounts are getting a similar deal. Many banks are now offering clients up to 4% interest per year on account balances greater than $25,000 and 1% on any balance after $25000. Also, these banking institutions are offering $25 in reimbursements per month for ATM charges.

The Catch

The only catch to getting high interest reward checking accounts is that you have to use your debit card up to 12 times per month. Sounds like a lot, at first, but then you realize that its only 3 times per week, or both weekend days and a weekday. Not too shabby really, the bank takes the earnings on the transaction fees to help offset the added expense of a high rate checking account.

Get Free Meals

A $25,000 checking account at 4% per year earns roughly $86 per month in interest, not bad considering most checking accounts with a similar balance earn just $10.75-21.50 per month. (.5-1% per year. Now, how do we eat for free? Well, considering the difference in interest rate, you’re making an extra $64.50-$75.25 in interest. Divide that by 12 (the number of debit card swipes you have to make each month to qualify) you’re earning practically $5.37-6.27. (A fast food meal costs roughly that amount)

Debit Card Swipes for Meals

Just by signing up for high interest reward checking accounts, you’ll be able to eat for FREE 12 times per month. How about a Subway three times a week? Maybe a Big Mac. Remember, as long as you use your debit card 12 or more times per month you qualify for high interest checking. 12 free pairs of socks? 12 free packs of cigarettes? Doesn’t matter, anything works, as long as its between $5.37-6.27. Pretty cool huh?

Investing