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Your Take: Do You Use High Yield Reward Checking Accounts?

About a year ago, a new type of checking account start appearing all over the place. They were basic checking accounts with, seemingly, abnormally high yields. It was not uncommon to see them offering over 5% APY on a checking account. Normally, checking accounts offer a very generous 0% APY. In fact, one of the reasons I recommend credit unions is because their share draft accounts, another name for a checking account, usually offer something slightly higher than zero.

When the high yield reward checking accounts first appeared, many people thought they were scams. You had the usual “if it sounds too good to be true” alarms going off but if you read the terms and conditions, it’s clear how they are able to provide such high rates. I won’t go into those details here but if you aren’t familiar with these types of checking accounts, you can click here to read more about high interest reward checking accounts [3].

I never took advantage of them because none were local and, to be honest, I’m just lazy. I’m curious if you took advantage of them and what you thought of high yield reward checking accounts. They’re still available now, though at slightly lower interest rates, and do current high yield savings account rates [4] make them more attractive?

(Photo: pocheco [5])