HOUSTON – Lower interest rates are great for homeowners who want to refinance their mortgage but have you taken a look at what interest you’re earning on your savings account right now? Major banks are currently paying less than 1% interest. If you are the type and set it and forget it on savings, you can forget earning any money from interest. But if you move your money to a rewards checking account, you can earn hundreds of dollars.
What are rewards checking accounts?
A rewards checking account is a high-yield account. They are mostly offered by online-only banks and some credit unions. There are some requirements you will have to meet to earn the interest that can be as high as 5%.
For example, Consumer Credit Union offers a rewards checking account that lets you earn up to 4.09% interest if you do these things:
- Join Consumers Credit Union for a $5 fee.
- Agree to receive electronic statements
- Make at least 12 debit card purchases every month
- Spend at least a thousand dollars each month on a Consumers Credit Union Visa credit card
How much more can you save?
Let’s do the math. If you had $10,000 in a Chase savings account right now making .01% interest, you would earn $1 in a year.
A Consumers Credit Union rewards checking account that pays 4.09% interest will give you $409 in the same time period.