Comments on: How to Find the Best Checking Account Rates http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/ High Return Investing with Dax Fri, 18 Dec 2009 10:01:37 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Nirav http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/comment-page-1/#comment-18572 Nirav Fri, 03 Oct 2008 21:45:28 +0000 http://www.daxdesai.com/?p=800#comment-18572 Told ya so! Midwest America dropped their rate from 7.01% to 6.31%. http://bankdeals.blogspot.com/2008/10/reward-checking-account-rates-fall.html Told ya so! Midwest America dropped their rate from 7.01% to 6.31%.

http://bankdeals.blogspot.com/2008/10/reward-checking-account-rates-fall.html

]]> By: Nirav http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/comment-page-1/#comment-18207 Nirav Fri, 26 Sep 2008 01:19:20 +0000 http://www.daxdesai.com/?p=800#comment-18207 I found a bank near me whose rewards account gives 5% APY up to $50k and has free ATMs WORLDwide which could my nice for an upcoming trip. Most that I've seen only refund nationwide. I found a bank near me whose rewards account gives 5% APY up to $50k and has free ATMs WORLDwide which could my nice for an upcoming trip. Most that I’ve seen only refund nationwide.

]]> By: Nirav http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/comment-page-1/#comment-18206 Nirav Fri, 26 Sep 2008 01:15:22 +0000 http://www.daxdesai.com/?p=800#comment-18206 http://www.highyieldcheckingdeals.com/ has a pretty thorough list of deals in your area (and those available nationwide marked with a *). Assuming you're earning 3.25% (HSBC's current rate) in a money market account for any excess over the max of the "rewards" account, a 5% rewards account with a max of $50k yields about the same as a 7% account with $25k limit if you have $50k in savings. Personally, I think the 7% deal won't last anyway since a lot of Fatwallet people are signing up for it. So I'm steering clear of the Midwest America account (and it's kind of a hassle to open anyway compared to others). So with the same assumptions as before, a 5% account with $50k max will be better than a 6% account with a $25k max if you're saving more than around $40k. The moral of the story? Don't chase APY alone. Look at http://www.westbankiowa.com/ for example for a 5% $50k max account available to everyone. http://www.highyieldcheckingdeals.com/ has a pretty thorough list of deals in your area (and those available nationwide marked with a *). Assuming you’re earning 3.25% (HSBC’s current rate) in a money market account for any excess over the max of the “rewards” account, a 5% rewards account with a max of $50k yields about the same as a 7% account with $25k limit if you have $50k in savings. Personally, I think the 7% deal won’t last anyway since a lot of Fatwallet people are signing up for it. So I’m steering clear of the Midwest America account (and it’s kind of a hassle to open anyway compared to others). So with the same assumptions as before, a 5% account with $50k max will be better than a 6% account with a $25k max if you’re saving more than around $40k.

The moral of the story? Don’t chase APY alone. Look at http://www.westbankiowa.com/ for example for a 5% $50k max account available to everyone.

]]> By: Dividend Growth Investor http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/comment-page-1/#comment-17732 Dividend Growth Investor Tue, 16 Sep 2008 13:24:35 +0000 http://www.daxdesai.com/?p=800#comment-17732 Wow nice catch. My rewards checking only pays me 6.01% APY. The bank earns because you use your debit card more often directly out of your checking account instead of using a credit card. There will be people spending more than they have in their accounts..which triggers fees for the bank. In addition to that they don't have to print out and mail statements - its all done electronically. Another way that the bank makes its money is that not everyone will remember to make 10-12 transactions/ month so not everyone will be earning the big fat yield. Wow nice catch. My rewards checking only pays me 6.01% APY. The bank earns because you use your debit card more often directly out of your checking account instead of using a credit card. There will be people spending more than they have in their accounts..which triggers fees for the bank. In addition to that they don’t have to print out and mail statements – its all done electronically.
Another way that the bank makes its money is that not everyone will remember to make 10-12 transactions/ month so not everyone will be earning the big fat yield.

]]> By: Dax Desai http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/comment-page-1/#comment-16333 Dax Desai Tue, 26 Aug 2008 14:59:00 +0000 http://www.daxdesai.com/?p=800#comment-16333 There are many other options for an undercapitalized bank so I'm not sure how they manage this. My guess is they count on people like me not doing their 10 transactions and getting the sub 1% rate. That would make up for it. I wonder what rates they loan money out at? I'll try to see if I can get one of my contacts that owns a bank to check on this bank's status with the Feds. There are many other options for an undercapitalized bank so I’m not sure how they manage this. My guess is they count on people like me not doing their 10 transactions and getting the sub 1% rate. That would make up for it. I wonder what rates they loan money out at?

I’ll try to see if I can get one of my contacts that owns a bank to check on this bank’s status with the Feds.

]]> By: Rizzo http://www.daxdesai.com/2008/08/25/how-to-find-the-best-checking-account-rates/comment-page-1/#comment-16295 Rizzo Tue, 26 Aug 2008 00:14:31 +0000 http://www.daxdesai.com/?p=800#comment-16295 7% = must be an undercapitalized bank that needs to raise cash fast 7% = must be an undercapitalized bank that needs to raise cash fast

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