NEW YORK (5/12/15)--Consumers wanting a better return on their savings might do themselves a favor by investigating high-yield checking accounts--particularly those at credit unions.
Bankrate.com surveyed 56 accounts at financial institutions March 16-25 and found the highest of the high-yield checking accounts was available at a credit union. The annual percentage yield (APY) of 4.07% at BECU, Tukwila, Wash., far outpaced banks in the survey.
In fact, of the 13 credit unions in the survey, four offered an APY of more than 3% while only two of the 43 banks offered higher than 3%.
With its balance cap of $10,000, Consumers CU, Round Lake Beach, Ill., provided the highest annual maximum earnings.
To earn the best rates, account holders typically have to make a minimum number of debit card transactions, receive electronic statements, use direct deposit or pay bills online.
Because of these conditions, these accounts require a more engaged consumer, said Greg McBride, Bankrate’s chief financial analyst.
But by switching to a high-yield checking account, savers can easily add several hundred dollars to their emergency savings each year with full liquidity and the protection of federal deposit insurance, he added.