Is a premium checking account worth it?
If you have a substantial amount of money you’d like to stash away in a bank account, you might want to consider a premium checking account. If you manage to keep the right balance, you can avoid paying significantly higher monthly fees. There are some appealing perks to having a premium account versus a typical bank account as well.
Go beyond the standard
As a reward for keeping your money with a specific bank in a premium account, you can get perks like better interest rates, waived fees, free checkbooks, and reimbursement for outside ATM fees. For a customer to be eligible for premium checking perks, it is often expected they can maintain a certain balance – $25,000 or more between linked accounts is fairly standard.
When you want to do all of your banking with one institution, signing up for a premium account has its benefits.
Pay more for perks
It may not be worth the rewards offered by a premium account if you cannot maintain the minimum balance or deposit requirements. Recurring monthly fees to keep a premium checking account can quickly eat at your cash reserves after a while.
Unlike standard accounts that have a relatively low fee, premium accounts can charge upwards of $25 to $30 a month. If you could use a discount on a loan, or want a more competitive interest rate, a premium account is worth the cost.
More money fewer problems
When it comes to opening and maintaining a premium checking account, it’s perhaps the one time in life where it pays to have more money. The most competitive of banking offers reward customers the most when they have anywhere from $50,000 to $200,000 stashed in their linked bank accounts.
Some perks offered by a premium account are available with online banks with no fees and a near zero minimum. If you aren’t rolling in dough, you might want to pass on tackling premium account fees.