6% Return on Cash? Check Your Local Bank
March 4, 2009 by Miranda Marquit
Filed under Finance
Where can you get a 6% return on your cash? Probably not in a CD or a high-yield online savings account. Increasingly, the answer to going beyond mere capital preservation is to look local. Some regional and local banks and credit unions offer so-called rewards checking accounts that offer returns of between 3% and 6%. In this economy, where the big guys are offering cash yields of something closer to 2% for “high-yield” savings accounts, that’s nothing to sneeze at.
Of course, many of these rewards checking accounts limit your total yearly yield, and you will have to maintain a minimum balance. There might also be additional requirements about how you can receive your statements and how you make your deposits. Watch out for check-writing limits as well, and be aware of fees.
When choosing a rewards checking account, make sure you understand what is required, and make sure the bank or credit union is properly insured.
image source: sxc.hu
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