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And even your checking account a check up.
Certain accounts can boost your bottom line more than others in fact some accounts are yielding 33 times the national average.
And they come with federal deposit insurance Greg McBride senior financial analyst at Bankrate dot com joins me now with details.
Greg we're talking about high yielding counts but the reality is even the high -- accounts are not that impressive take a look at these numbers.
So average returns according to your website high yield checking one point 64%.
But it's better than a one year CD better than a money market account take a look at those numbers.
So what do you make of -- is -- gonna get better isn't gonna get worse.
Well I -- for starters they were in an environment where a lot of investors are looking for additional yield but at the same time they're not necessarily looking to take on risk.
And I -- -- is really the perfect solution to that.
You get some additional yield yet you still have federal deposit insurance protection and complete access to the money it's like what it's not tied up as it would be with a CD.
Now they're certainly not immune from this lower rate environment in the rates coming down -- -- in recent years but.
They will also be the first to see their yields go up when interest rates inevitably rebounds.
Ari but there are being -- caveats to this which I find interesting requirements -- mostly institutions who offer the highest of the high yield accounts.
You say electronic statements she gonna have electronics image -- your -- statements.
Debit card transactions what about that Greg we mean by that.
Well typically the requirements are you reacted as you said get your statements online can't get him by -- paper.
Have to -- about ten debit card transactions per month that's the most common requirement.
And then have either a direct deposit or pay a bill online and the idea here is if you meet those requirements.
You are not higher -- than in any month where you fall short of that you're gonna -- a much lower rate of return.
For that given month but you can get yourself back to the higher yield the following month.
-- you do meet those.
While I you know it's funny -- -- you know I was making fun of one point 64% right because it's just not much money at the end of the day.
But they're not letting people put a ton of GO into these accounts there are caps now on these high yield checking accounts.
Dollars is the current cap.
Last year was 191000 what's your fear here.
Well the idea is because they're paying this above market rate of return they don't want to do so on an unlimited sum of money.
So that put this cap on.
The maximum balance that you can have that firms that -- the other -- so we see fifteen or one -- sometimes even 25000 dollars.
As being the maximum that you can keep in the count and -- that high area.
Course we should mention if he failed to meet the requirements that we out outlined before it beginning it cut.
-- -- return may be as much of -- as seven tenths of percent.
Looks a little bit about where you go from here let's say -- -- -- I want one of these high -- accounts I don't have but how do you shop for wine in his most likely to offer it.
Well these -- accounts that are typically offered by smaller community banks and credit unions.
Let Bankrate dot com we recently surveyed 55 of these accounts from all over the country.
They are posted on our website about a half of the accounts are available nationwide so it's not something that's necessarily limited by geography.
Everybody that's watching us is able to take advantage of it.
-- rain and -- course you know is go to Bankrate dot com to get some information on high -- accounts Greg thanks for helping us out tonight appreciate it.
Thank you --
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