In tough times like this, it’s important that you assess where your money is going and where you are spending it. And while you might think your money is save at the bank, the banks are trying to nickel and dime you with record fees. But it’s also important to make sure to let whatever dime you have work for you as strong as possible.
While I do not want to advocate changing your checking account every month to keep up with the latest rate changes, I am still amazed at the number of customers regular retail banks have that offer nothing or so little in interest rates on their checking accounts. Bank customers must be a very loyal (or lazy?) bunch, otherwise most of the (especially larger) banks could not sustain offering such lame terms. What should as decent checking account offer in 2008? I believe at a minimum the following:
- FDIC insurance
- Free
- ATM reimbursements
- High interest rate yield (how about up to 6% right now?)
- Online access and transactions exportable into money software (such as Quicken, Money etc.)
- Free debit card
Some of these features are often linked to fulfilling certain conditions, such as a certain number of transactions, debit card purchases, regular incoming wire deposit (salary etc.). If you don’t have any of these features you might want to check out some of these sites:
I am currently banking with EverBank, and am fairly happy with it, but I am considering a change given they are offering only half of the highest rate available right now. I value though that there are no strings attached to the account (no minimum anything). The ATM reimbursement is a bit cumbersome though, as you need to send them the ATM slips in via their bank by mail envelopes (provided). Also, incoming wire transfers are free. Outgoing ones are $50 and thus a rip-off, but very fast. I sent money to Germany in the past and it arrived within 72h.
In any case, paying for checking should be a thing of the past, and you should at least get a somewhat decent interest rate on your checking account, otherwise, you might consider looking around for something better.
