When opening a bank account, you will usually be presented with quite a few different options, each with pros and cons. It can be frustrating to make such a decision since the attributes of each type of account might be poorly explained or unclear. To help you out, here is an introduction to one type of checking account known as the premium checking account.
So what exactly is a premium checking account?
Most banks offer a basic checking account option. You put money in and take it out when you need it. Lately, banks have created new, fancier types of checking accounts that have additional requirements and benefits.
Most premium checking accounts require a substantial minimum balance. Fortunately, this balance can be distributed throughout multiple accounts that you hold with the same bank. Many also have monthly maintenance fees to keep the account open.
What are the benefits of premium checking accounts?
- Interest - The most appealing benefit is that premium checking accounts tend to pay interest on your money. If you have enough money stored, then the interest you earn can easily outstrip the amount that you are paying in maintenance fees. This means that a premium checking account offers the money-earning potential of a savings account combined with the easy access of a checking account.
- Rewards Programs - Many premium checking accounts have associated point programs that allow you to get cash back and rewards based on what you buy. If you want to acquire a credit card for the rewards program, you might be better off looking into a premium checking account.
- Specialized Support - Another big upside is that banks tend to offer personalized customer service to premium account owners. If you have a problem with your account, such as difficulty depositing or withdrawing funds or if you lose access to your account, then the bank will place high priority on assisting you.
- Multiple Accounts - Finally, premium checking counts often allow you to divide up your money into a variety of accounts so that you can keep your money easily organized. As long as these accounts are linked, you can combine the total amounts in each to count towards the minimum deposit requirement. Having multiple accounts can make your life a lot easier if you want to keep your money separated for bills, entertainment, and any number of other categories.
Visit a bank in your area to find out more about premium checking.
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