Premium checking accounts can offer reduced fees, cash-back rewards, rate discounts, and enhanced service—but may not be worth the lost interest you could've earned elsewhere.

What Are Premium Checking Accounts?

Premium checking accounts are a bank’s higher-tier, broadly available deposit accounts for consumers who can maintain a minimum balance requirement in return for avoiding a monthly service charge. Mꩵany premier accounts require you to keep a minimum balance of $10,000 to $15,000 or more. Many of these accounts wiಞll credit the money you keep in linked savings, checking, retirement, and investment accounts within that banking family.

However, some premium checking account offers are also extended to U.S. Armed Forces servicemembers and vജeterans, employees of specified businesses, and those who already have a relationship with the bank, such as through a home mortgage loan or membership rewards pr﷽ogram.

Premium checking accounts may ❀offer various benefits that could i𝄹nclude:

• Waived or refunded ATM fees, even at non-bank branded ATMs
• Interest earned on your checking account balance
• Increased interest rates on associated savings and CD accounts
• Higher limits on transfers, debit card usage, and ATM withdrawals
• Free bank checks, money orders, stop payments, and incoming wires
• Several waived or reimbursed insufficient funds fees annually
• Rate discounts on loans
  
• Better credit card rewards
• Dedicated customer support lines
• Safe deposit box rental

Each premier checking account works a little differently and offers different benefits. But generally, if you don't maintain the minimum balance over time, you could either pay a monthly maintenance fee or get bumped down to a more standard banking tier without the above benefits.

Premium Checking Accounts: Considerations

If you’re just looking for an everyday checking account and comparing various banks’ offerings, you’ve probably run across a bank's premium accounts. There’s no one-size-fits-all answer, but here are some considerations.

Banking Services

If you're someone who uses a lot of traditional banking services (such as personal checks, money orders, and incoming or outgoing wires), a premium checking account may waive or reduce many of these fees. Your monthly savings could add up fast if you're repeatedly paying per-item fees. You can also often open multiple accounts for free, which also help meet your balance requirements.

ATM Usage

One of the biggest perk🐓s of premium checking accounts are fee-free ATM transactions. In most cases, however, at non-bank-owned ATMs, you may have to pay the ATM owner’s fees unless your bank refunds any fees paid. But if you don’t use ATMs regularly, this perk may not be important to you.

Balance Fluctuations

If you have difficulty keeping the minimum in your account, any advantages you earn from a premier account could be lost to monthly maintenance fees, typically around $25. On the other hand, if you have more than $250,000 in your account, you may not be able to take advantage of FDIC insurance if your bank fails.

Interest Rates

Calling these accounts interest-bearing might sound good, but be sure to compare rates. Most average around an APY of 0.01% to 0.02%. On a $50,000 balance, that works out to $5 to $10 per year. Whether you stay with your bank or shop around for the best certificate of deposit (CD) rates, you could earn nearly five times a checking account's rate with a CD. 澳洲幸运5官方开奖结果体彩网:Money market accounts may yield slightly less but some hღave rates that are comp🅰arable to CDs. 

Rewards and Discounts

You might receive bonus 澳洲幸运5官方开奖结果体彩网:credit card rewards or rate discounts. Not all banks offer rewards, but you can facto🦄r the potential savings available into your decision if you're hoping to borrow money soon.

Some financial institutions offer sign-up bonuses for accounts, including premium accounts. To qualify for the bonus, you must meet certain requirements, typically 澳洲幸运5官方开奖结果体彩网:direct deposit or minimum account transfers.

Customer Service

Your bank or credit union's customer service aspects are important to weigh as well. Review of "premium checking accounts" data in the Consumer Financial Protection Bureau's Consumer Complaint Database to see if there are concerns about your premium checking account.

The Bottom Line

Keeping a five-figure balance in one checking account to avoid a monthly fee probably isn’t a good financial strategy. Ultimately, it depends on how much you’re using your bank’s other services and how easy it is to hit the premium-tier account minimum. If you or your family members use bank services regularly, a premium checking account could save you money in fees. Premium accounts could help you get slightly lower loan rates or perks from the bank’s investment division. Compare rates against the top 澳洲幸运5官方开奖结果体彩网:high-interest checking accounts to ensure you get a good deal.