Avoiding Problems with High-Yield Checking Accounts

High-yield checking accounts are a great way to get your money working harder for you. They can be a help you save money and earn more if they are doing what they are supposed to do. However, you have to be careful when signing up for a high-yield checking rewards account so you do not fall get unexpected charges or miss any interest payments.

Bank of the Sierra recently began offering a reward checking account for consumers across the nation. The yield of this bank’s promotional account was 4.09% for customers depositing at least $25,000. The only problem with this type of account is that many people thought they qualified for the 4.09% when they did not. It was not Bank of Sierra’s fault, however, as it is up to the customer to read the “fine print” before signing up for one of these accounts. Here are some common problems reported by various customers who have learned their lesson to know the details.

E-Statements
All reward checking accounts want you to sign up for e-statements. This is a requirement in order to qualify for the rewards. This is not any automatic enrollment so make sure you take the necessary actions to enroll rather than assuming you are enrolled when you sign up for the account. There is usually a box to check on the application, but also search the bank’s website for a link to enroll in e-statements just to be sure it gets done.

Bill Pay
Many of today’s rewards checking accounts have a bill pay requirement attached to them. Some banks offer either a direct deposit requirement or a bill pay requirement in order to qualify for the rewards. Some banks require both in order to qualify for a rewards checking account. Read the requirements carefully because in the case of Bank of the Sierra’s promotion, you must make one payment through the bank’s system and it must be completed before qualifying for the reward. At least one customer reported that his payment was “pending” and the bank did not pay the reward interest for that particular month as a result.

Cycles
Be aware of the bank’s cycles so you can be sure to qualify for the promotion. In the case of the Bank of the Sierra, the cycle ends on the first Thursday of each month and the period for qualifying for the rewards ends the previous business day. As a result, there will be a different number of qualifying days each month and it is up to you to keep track of them and follow through with the requirements to collect your reward.

High-yield rewards checking accounts are an ideal way to put more money in your account each month. The trick is to know the requirements and qualifications before signing up so you can get the most from the promotions.