What is Rewards Checking?

Rewards Checking is a product usually offered by local banks and credit unions that requires customers to do several financial activities with their checking account in return for extraordinary saving rates.  To compete against major/national banks with “free checkings” and other amendities like abudance of ATM machines, local banks and credit unions started Rewards Checking as a way to attract more customers.

What are the requirements of Rewards Checking?

It usually differs from bank to bank but usually it entitles:

1. Making 10-15 “signed” debit bank card transactions per month
2. Receive electronic statements / paperless statements
3. Log into your account at least once a month
4. Make one or two online bill payments or qualifying direct deposits

Usually the high rates on Rewards Checking only applies the first $25,000 in deposit.

The benefits of Rewards Checking

1. Extremely high yield for the deposit.  Usually over 5.00% APY.  The national average for national banks are under 1.00% APY
2. Free ATM usuage or refund
3. Usually offer better customer service than national banks

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