Get 6% On A Checking Account?
Looking for somewhere to stow your cash? If you’re concerned about stocks and bonds, there are some safe storage opportunities that offer more than minimal yields.
According to Inflation Data.com, inflation is non-existent right now. They currently post inflation at -1.29%. Deflation has reigned for the last three quarters. Although they see the trend heading in the other direction right now, I wouldn’t be surprised if we see another quarter of deflationary activity. Bear in mind, the “official” Consumer Price Index differ from non-official tallies, but any way you look at it, inflation is weak.
That’s one reason to consider cash investments. Inflation won’t eat away at the purchasing power of cash you store in the bank. Smart Money recently discovered some high-yield accounts available at community banks and credit unions.
These “rewards-checking” programs offer depositors much higher yield than other traditional checking or savings accounts – some as high as 6%. Granted, they want to see some activity because they receive interchange revenue when you use your debit card. This helps the bank recover the expense of the high rates.
It makes sense for these institutions to offer attractive rates. They’re up against behemoths like Wells Fargo and Chase, which can offer lower rates because people place a value on their convenience and too-big-to-fail stability.
Shop around for high-yield checking accounts in your area at community banks and credit unions.