Should I Open Multiple High Interest Checking Accounts

By Kellie Purden

Many individuals are finding that high interest checking accounts are an excellent option for parking large amounts of cash that must be kept liquid. However, many banks and credit unions have begun to impose a ceiling on the amount of funds they will pay out a high yielding interest to. Thankfully, individuals can open multiple accounts with differents banks in order to receive as much interest as possible.

Banks often offer active customers a special high interest checking account in order to encourage other business with the bank. These accounts typically help bring in profitable customers for their mortgage, auto loan and credit card operations. Customers are typically offered a high interest checking account as long as they make a direct deposit of a certain value each month or make a certain number of debit card transactions. These qualifications are extremely easy to meet. Account holders typically can receive the promotional interest rate on deposits up to several thousand dollars. Each bank offers a different maximum ceiling and will provide customers with a different interest rate than another bank.

Customers who have enough liquid cash should strongly consider opening multiple high interest checking accounts to earn as much interest as possible. Banking customers are protected for up to $250,000 in losses should a bank become insolvent through the FDIC. Credit union members have the same level of protection through the NCUA and it covers each accounts seperately. Customers only have $250,000 in coverage at each bank with a few limited exceptions. However, each bank that a customer has an account at also is protected for $250,000.

Anytime a customer opens a high yield checking account they should carefully review the requirements in order to keep their interest rate. Each account typically has different requirements. Customers who do not meet their requirements will either find that their account is converted to a checking account which charges fees or have a service fee assessed for any month they do not meet the requirements. Customers also will not receive the interest rate for the principal that they have in their account. Bank account holders may find it easy to write down the minimun requirements on their calendar or put alerts into their cell phone. This is an easy reminder in order to ensure that customers qualify for their interest and can earn hundreds or even thousands of dollars in high interest rewards each year.

A high interest checking account can be a wonderful resource for individuals who have a large amount of cash. Many consumers are able to deposit their funds into these accounts and earn hundreds or thousands of dollars in interest over the course of a year. However, banking customers must watch out to ensure that they have all the requirements met. This can be difficult for many customers who open multiple high interest accounts with different banks. Customers who fail to meet the requirements may find that they are paying more in fees than they are receiving in rewards.

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