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What Is a Rewards Checking Account
What Is a Rewards Checking Account

What Is a Rewards Checking Account?

Spending money is a part of life. But what if spending money could earn you money? Depending on the terms of your checking account, you may be able to earn cash back or other perks. When choosing your account, look for great rates and low fees, but also for rewards checking account.

Spending is inevitable, so don’t lose out entirely on the transaction—choose a checking account that puts your money to work with cash back or other incentives.

When choosing a new account, look for a financial institution with great rates, flexible terms, low fees, convenient banking with accessible online technology, and products that fit your lifestyle.

Don’t have a rewards checking account?

No problem! It may be time to switch and open a new account or do your banking with a new financial institution.

Learn about the many benefits of opening rewards checking account.

Why Choose a Rewards Checking Account?

A reward checking account offers perks for spending money. Typically, there are various rewards, depending on the account. Look for a financial institution that offers a gamut of products and services so you can choose a rewards program based on your needs and wants.

Do you want to earn cash back or accrue interest?

Maybe you prefer a perk that supports your lifestyle, such as airline miles so that you can travel more. Or you love streaming movies and music but don’t want to break the bank with your love of media. If so, look for an account that rewards you with credit toward your favorite services.

The great thing about rewards accounts is the many options. Your lifestyle is unique, so pick a perk that rewards the lifestyle you are already leading. Earn rewards for the money you spend to save on what you regularly do. Every time you make a transaction, you invest in that reward.

How Do Rewards Checking Accounts Work?

Each checking account has its own terms. Depending on your account, the terms will determine what checking rewards you earn, how much you earn, and what rates and fees apply. Before making your choice, understand these terms and weigh the pros and cons of each.

When researching rates, look at any requirements. Compare these to other accounts and pick one that best suits your needs.

Some things to keep in mind when shopping around include:

  • What is the minimum amount required to open the account and earn dividends?
  • What is the dividend rate? How much APY (annual percentage yield) does the account earn?
  • How often does it compound interest?

Keep in mind perks are great, and earning money by spending is even better, but it’s not the only thing to consider. Make sure the account you choose does not have huge fees or minimum requirements that are too large. A great account will earn you rewards without costing you steep fees.

Once you understand the rates and terms, consider the reward options. If the accounts you are considering have similar terms, then you can pick them based on perks. You’ll get more benefits than just storing money and earning rewards doing what you love.

Benefits to Look For

There are many benefits to choosing a reward checking account. Though the specific benefits will vary depending on the account, there are some common ways to benefit from your rewards account.

Some of the many benefits may include, but are not limited to:

  • Earn up to 4 percent cash back. Every time you swipe your card on qualifying purchases, you can earn a percentage of cashback. You don’t have to adjust your lifestyle; earn money back with your regular purchases and activities and put money back in your wallet.
  • Grow your money faster, even when it’s sitting in your account. High-yield accounts reward you with higher interest rates. High APY yields the best savings. If an account says you can earn dividends, you are ready to earn interest. Sometimes, the terms differ when you are banking with a credit union, which is customer owned.
  • Receive reimbursements for ATM surcharges. Don’t worry about pesky ATM fees; take advantage of ATMs nationwide and get fees refunded at the end of the month.
  • Take advantage of no monthly service fees and keep what is yours.
  • Qualify for loan discounts for vehicle and personal loans. If you have an active checking account, you may be able to receive a discount on your next loan.
  • Receive one-time sign-up bonuses when you open a new account.

Additional Perks to Choose From

Aside from the above rewards, you can qualify for other fun perks. Earn rewards based on what matters to you, and have fun.

Here are just a few things available to you with one of the many rewards accounts available:

  • Cash for your Netflix, Hulu, Spotify, Apple, and Amazon downloads or purchases every month
  • Reduced monthly fees with routine transactions, such as opting for eStatements, making direct deposits, using your debit card for purchase transactions, or maintaining a daily balance
  • Points or airline miles for travel
  • Waived monthly fees for younger account holders
  • Overdraft protection
  • Digital banking
  • Mobile check deposit
  • Manage debit card activity online or through phone apps: protect against fraud, manage activity, or set spending limits.

Partner With a Credit Union for More Savings

You can get better rates and services when you join a credit union. Credit unions are member-owned and not-for-profit, allowing them to offer competitive interest rates, fewer and lower fees, and great customer service. If your account doesn’t offer your desired perks, consider switching altogether and joining your local credit union.

Capital Credit Union services northeast Wisconsin and is easy to join. Apply now for tremendous advantages and checking account rewards that match your unique lifestyle.

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Daily Money Saving is a community built around the notion that saving money is good. We offer free articles and information on all aspects of personal finance including debt reduction, how to save money, how to make money and how to invest.

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