When I first started to actually looking at my personal finances, even prior to the creation of this blog I was heavy into yield chasing and bank bonuses. I thought I was doing myself a favor by squeezing out that extra half a percentage point, little did I know that the CC debt I was carrying destroyed any such gain and not mention when you actually do the math on yield chasing it just doesn’t make sense. I didn’t have enough cash in the bank to make a dent, but no one would have been able to convince otherwise.
As saving rates started to drop banks came up with this brilliant idea to connect your rate with a money maker for the bank – swipe fees! It was a win for everyone except small businesses. The saver gets a higher rate, and banks get an income stream (swipe fees) to offset that rate they have to pay. In most cases I bet the small business wasn’t even effected all that much since the person who would jump through these hoops probably didn’t use cash anyway.
Regardless, it was around that time I just stopped paying attention to that world. However, I couldn’t ignore a recent article from CNBC on the topic titled, “4% Interest, Without Fees: Too Good to be Checking.”
The article highlights a new type of checking account that works with local banks and credit unions,
Imagine if you could earn 3 or 4 percent interest on a “free” checking account – with no minimum balance requirement, no monthly fees and free transactions at any ATM in the country?
It sounds too good to be true, but it’s not.
The Kasasa checking account (pronounced kah-sah-suh) offered by dozens of community banks and credit unions across the country is for real. Right now, 29 of these institutions are paying 3 to 4 percent APY to those who qualify.
For 4%, I tried out my zip code. Only local credit union came back and it was no where near 4%
Don’t get me wrong 1.51% is a lot more than what I am getting now, just not enough to make me start moving money and dealing with the hoops I have to jump through to get that rate.
Ever use this tool or any other type of bonus checking?