How To Compare Cash Back Checking Accounts
Now we have access to checking accounts that offer rewards or cash backs. They are rare but because there are so many banks that compete with each other, offering such an account is one option that is considered. Specialists agree that more cash back checking accounts will appear in the future. Because of this, we need to understand exactly what these are.
Basically, we are talking about a regular checking out with the big difference being the fact that the user gets rewards based on some specific factors. In most cases holders receive cash, airline miles or a higher interest rate for the money deposited. Requirements apply and can vary from one bank to the next.
The Cash Back Checking Program
The payments or bonuses that are offered are received based on percentage of account spending or on a per-transaction basis. As an example, Discover Bank offers cash back in a value of 10 cents per a transaction, up to the maximum of one hundred transactions and a maximum amount of $10 per month. Transactions that qualify include making payments with the online banking system, paying bills online, clearing checks and buying with the use of the CC attached to the cash back account.
As another example, Bank Of The Internet USA offers 1 percent on the debit card payments that are transacted with the use of a signature. There is just a rule of having to maintain a $1,500 minimum daily balance. 0.5% if offered if this is not the case. However, supermarket purchases do not apply and there is a cash back limit set at $2,000 monthly.
Increased Interest Rates
Some checking accounts offer a higher interest rate. In most situations such an account makes it a lot easier to deal with the requirement than with the other option mentioned above. Bank5 Connect gives you an APY checking account topped at 0.76% if the account has a balance of over $100.
These are the cash back accounts that you most likely already know about since they are among the first that appeared and they were heavily marketed. Mileage rewards were normally offered through a specific card but now they are being to be attached to cash back accounts. In most situations the requirement is to make a monthly deposit of a specific amount.
Bonus For Opening An Account
This is the last type of cash back account that we should mention. It is exactly what the name implies: the account holder will receive a bonus when an account is opened. In most situations the restriction is to set up some sort of direct deposit system, normally connected with salaries. Also, the bonus is normally wired a number of days after the deposit that meets the discussed requirements.