Warnings that checking account chasers should pay heed to

One of the recent surveys conducted shows that it is possible for people to earn a certain amount on the money in their bank accounts, but this involves making many changes to the way they manage their money and keeping an eye out for the changes in the interest rates and other fees. However, there are a few warning that checking account chasers must pay heed to before opening any new high yield checking account.

The interest rates that are offered on high yield checking accounts do not last a lifetime. There are many credit unions and certain banks that are offering interest rates that are higher than the national average. However, there interest rates are always subject to change. Karen Perlman, the CMO of MB Financial Bank located in Chicago, says that the interest accounts for bank accounts are determined using several factors and the market volatility can either increase or decrease the existing rates. In addition to this, the rules laid down by the Federal Reserve do not stipulate the banks to announce the change of interest rates for bank accounts. A senior financial analyst, Greg McBride, says that most customers are in for a shock because the checking account rates they sign up for do not remain the same a month or two later.

Depositing huge amounts of cash in checking accounts with the hopes of earning high interest is unfortunately not always true. Most banks have a plethora of rules governing their checking accounts which prevents account holders from earning as much as they are keen to. Customers who want to earn well from these accounts should maintain a very high balance despite using the account on a daily basis.

The interest rates offered by certain banks may seem to be very appealing to consumers. But just this is not enough. Most banks offer high interest rates but levy a number of terms and conditions that may make it inconvenient for you to operate the account. Though earning interest is a good thing, customers should also pay attention to the fees and other charges, in addition to the balance that needs to be maintained.