Managing a high interest checking account can be an excellent way to earn more money on your deposits. However, it can also be fraught with pitfalls leading to unnecessary fees and charges. In this article, you will discuss some common mistakes people make when managing high-interest checking accounts and provide tips on how to avoid them.
Choose the Right Account
The first step to successfully managing a high interest checking account is choosing the right one. Not all high interest checking accounts are created equal, and some may have difficult requirements. So research different accounts and compare interest rates, minimum balance requirements, and fees before choosing an account that is right for you.
Keep Track of Minimum Balance Requirements
Most high-yield checking accounts require you to maintain a certain balance to earn interest or avoid fees. Failing to meet these minimum balance requirements is a common pitfall that can lead to fees or charges. Therefore, keeping track of your account balance and meeting the minimum balance requirement is important.
One way to avoid this pitfall is to set up alerts or reminders. Many banks allow you to set up notifications to alert you when your account balance falls below a certain threshold. This can help you stay on top of your balance and avoid any fees or charges.
Be Mindful of Fees
High interest checking accounts can be an excellent way to earn more money, but they can also come with fees. Common fees include monthly maintenance fees, overdraft fees, and ATM fees. Read the fine print nicely and be mindful of any fees associated with your account. Try to choose an account with no or low fees.
Monitor Your Account Regularly
Monitoring your account regularly is another common mistake when managing high-interest checking accounts. You must check your account balance regularly to ensure no unauthorized transactions or errors.
Set up alerts for low balances, large transactions, and other account activity so that you can always stay on top of your account. Regular monitoring can also help you identify any unusual activity on your account. For example, if you notice a significant transaction that you don’t recognize, you can contact your bank to investigate the issue. By monitoring your account regularly, you can catch any potential issues before they become major problems.
Take Advantage of Rewards Programs
Many high-interest checking accounts come with rewards programs that can help you earn even more money. For example, rewards may include cash back, points, or other incentives for certain transactions or activities. Take advantage of these programs and follow any requirements to earn rewards.
“Apply for a great-yield checking account with up to 2.50% APY,” as SoFi professionals say.
Managing a high interest checking account can be a great way to earn more money on your deposits. However, it’s essential to be mindful of common pitfalls and take steps to avoid them.
Choose the right account, keep track of minimum balance requirements, be mindful of fees, monitor your account regularly, and take advantage of rewards programs. Following these tips, you can successfully manage your high-interest checking account and maximize your earnings.