Yes, you can make interest on your checking account!
1- Risk:
You can’t get a whole lot less risk than having your money in the bank.
2- Liquidity
as to income stream: For most accounts your income will come in at the end of
the month. It will be based on your account balance.
3- Liquidity
as to principal investment: This is a checking account, so it couldn’t be a
whole lot more liquid.
4- Fees:
If you are sure to follow any requirements, you should be able to avoid
fees.
5- Return:
At Communication Federal Credit Union I am getting 1.5% APY.
6- Risk
of a lower than expected return: Several years ago when I first opened the
account it was 4% APY; they have steadily decreased the yield ever since.
7- Technical
investment minimum and maximums: There may be account minimums such as $2,500,
it depends on which bank or credit union you are looking at. Many institutions
will only pay interest on $30,000.
8- Effective
investment minimum and maximums: If you don’t have much money in the account,
it may not be worth the effort to you, I call this a practical minimum.
9- Effort: In all the high interest checking accounts
I’ve seen, you have to meet a handful of criteria every month (direct deposit,
auto bill pay, 12 transactions, those transactions have to be for more than
$100…).
How to get one?! -
Check out https://www.checkingfinder.com/
to compare rates.
This is just my assessment of these options to get you
started, but you should definitely look into it further for yourself.
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