High Yield Checking Accounts

This checking account doesn’t pay interest however it begs to be mentioned amongst the best checking accounts.

This account is best suited for those that rely heavily on their debit card to make everyday purchases. It’s also suited for those that can’t take advantage of higher interest rates from other banks but still want to be able to put money aside.

One of the most common complaints we’ve received is that these small interest payments at the end of the month don’t just add up. In this case, with every purchase that is made – the change is transferred over to your savings account. This in effect, can be one of the most efficient and effective way of saving money.

The account will hit you with fees if your money isn’t managed well and you occasionally overdraw.  In that case, any savings accumulated will take a large toll if any mistakes are made.

However, the idea is simple and can translate to a higher dollar amount in your savings that other accounts have to offer.

At some time, E*Trade will have to dissolve of the name Max-Rate checking. Once a top rated checking account that payed a high yield, this account now sits in checking account purgatory.

Sure, it has features that include unlimited ATM fee refunds, a nominal interest rate and FDIC insurance. Beyond that, there’s not much more that should draw interest.  The account does serve as sufficient transactional account if you’re a client of E*Trade.  They claim to have an easy transfer service between E*Trade accounts.

However, if you’re not a client of E*Trade, I don’t suggest one opening an account unless you’re trying to diversify your money or are a current client.

ING's Electric Orange Checking Account

A mainstay in ING Direct’s offering is their Electric Orange Checking Account. This account has been around for quite a while and payed a top interest rate when they were high a couple of years ago.

Now that the recession has wreaked havoc on financial institutions, this checking account interest rate has declined significantly. The account is still one that can provide an effective cash solution for those that are looking for the liquidity of a checking account with the added luxury of an interest payment every month.

The Orange Checking account is FDIC insured and features free bill pay and a debit Mastercard. You have unlimited access to their ATM network but will get charged if you choose to use one outside the network. In this case, Schwab’s Investor Checking exceeds what ING is currently offering.

If ease of use is of any importance to you, we’d recommend giving ING Direct a run. Once you setup an account with ING, you can easily create several sub-accounts to help you micro-manage your money. If you’re into that sort of thing.

It’s easy to open an ING account online.

Zion's Bank offers a great Money Market account.

Zion’s Bank offers much more than a simple interest checking account. They offer one of the best money market checking accounts nationwide.

Money can easily be transferred in and out of this account and checks can be written against the balance but that isn’t what sells this money market account. Simply put, it’s the interest rate and the fact that Zion bank does have local branches. If you’re not ready to get your finances online, this probably would be a good fit for you. With a consistently attractive rate, this account can pay immediate dividends for those that have large balances.

Schwab's High Yield Investor Checking

Charles Schwab’s High Yield Account doesn’t disappoint. Despite the recent tumbles of the interest rate, this checking account continues to rate as one of the top checking accounts in the nation.

Let’s start with the account features and highlights. The account comes with unlimited ATM fee reimbursement. Because Charles Schwab can’t prevent other banks charging you an arm and a leg for using their ATM (Bank Of America), Schwab can only refund all of the fees incurred when using another ATM. All ATM fees are reimbursed at months end.

In addition to the ATM Fee reimbursement, you will receive a nominal interest payment based on your average daily balance. All interest rates have taken a beating in this economy and Schwab is no exception. However, combined with the unlimited ATM fee reimbursement, I’d have to say this checking account ranks as one of the best.

There is a one small downside to Schwab’s checking account. That is the fact that it’s linked to a free brokerage account. Sure, it’s no fees but that’s not the issue. The issue is that it’s a pain to shift money directly into the checking account. You have to first shift into the brokerage account, wait for balance to clear, then transfer to your checking.

Otherwise, it’s a top notch account that’s FDIC insured, comes with no monthly service charges and no minimum balance requirement.

Learn more.