Understanding Rewards Checking Accounts: What You Need to Know
If you're looking for a way to earn more on your deposits and take advantage of other benefits, a rewards checking account may be a great option for you. So what is a rewards checking account? In this blog post, we'll take a closer look at what rewards checking accounts are and how they work.
What is a Rewards Checking Account?
A rewards checking account is a type of checking account that offers incentives to account holders for meeting certain requirements. These incentives can include higher interest rates, cash back on purchases, or other benefits. These accounts are often offered by credit unions or community banks, and they are designed to encourage customers to use their accounts more frequently.
How Do Rewards Checking Accounts Work?
The requirements to earn rewards on a checking account can vary depending on the financial institution. Some common requirements include using a debit card a certain number of times each month, receiving electronic statements, and having at least one direct deposit or automatic payment each month. If you meet these requirements, you can earn higher interest rates or other rewards.
For example, EFCU Financial’s Rewards Checking has two options:
- 5.12% APY* High Yield or
- 3.00% Cash Back
Members will earn their rewards for meeting specific qualifications each month. These qualifications include:
- making at least 12 debit card purchases
- having at least one direct deposit or ACH transaction
- receiving electronic statements
If you don't meet these qualifications, you'll still earn a base interest rate of 0.05% APY.
Benefits of Rewards Checking Accounts
There are several benefits to opening a rewards checking account. First and foremost, these accounts can offer higher interest rates than traditional checking accounts. This means you can earn more on your deposits and grow your savings faster.
In addition to higher interest rates, rewards checking accounts may also offer cash back on debit card purchases, free ATM usage, or other perks. These rewards can add up over time and provide you with additional benefits for using your checking account more frequently.
Finally, rewards checking accounts may also have fewer fees than traditional checking accounts. For example, some rewards checking accounts may not have monthly maintenance fees or ATM fees. This can help you save money over time and keep more of your hard-earned cash in your pocket.
Take Advantage of Rewards Checking
Rewards checking accounts are a great way to earn more on your deposits and take advantage of other benefits. With requirements like using your debit card a certain number of times per month, receiving electronic statements, and having at least one direct deposit, you can earn higher interest rates or cash back on purchases. Plus, rewards checking accounts may have fewer fees than traditional checking accounts. If you're looking to maximize your savings and get more out of your checking account, a rewards checking account may be a great option for you.
Rewards Checking Account in Baton Rouge
As a member of EFCU Financial, you’ll be part of a credit union that offers exceptional services to help you meet your financial goals, so you can be well on your way to making the most out of your savings. Open a Rewards Checking account to get started, or visit us at efcufinancial.org to learn more about what banking with EFCU Financial means for you.
Join EFCU Financial
At EFCU Financial, we strive to bring our members exceptional service and superior benefits. For more than 88 years, our focus has been member-centered. We are proud to serve South Louisiana with 8 branch locations in Baton Rouge, Gonzales, Prairieville and Denham Springs. Anyone who lives, works, worships or attends school in Baton Rouge, Gonzales, Prairieville or Denham Springs may join EFCU Financial.
*Annual Percentage Yield. Full disclosure found here.