Most checking accounts are very similar. The majority don’t earn much, if any, interest, but they are handy for managing everyday transactions.
However, with premium checking, you get more — sometimes, a lot more. For example, many premium checking accounts pay between 3% and 5% APY on a portion of your deposits, and some have a long list of unique perks.
That said, the bank might charge you extra for these benefits in the form of a monthly fee. However, this fee can often be waived if you meet specific requirements set by the bank.
So, is the potential fee associated with premium checking worth all of the other benefits? Here’s what you need to know.
Premium checking accounts have all the features typically associated with traditional checking accounts, but with more benefits. Here are some of the special features you can usually expect from a premium checking account:
Depending on the account, you might get access to a whole list of other valuable offers or free services too. For example, Alltru’s Premium Checking account comes with roadside assistance and 24/7 telehealth services. With BCU’s PowerPlus Checking Level 2 account, you currently get 8% APY on balances up to $15,000 for the first three months and 4% APY after that.
Like other checking accounts, some premium accounts have monthly maintenance fees of around $6 to $8. There are usually ways to get these fees waived, but the requirements are stricter for premium accounts than for regular checking accounts. For example, you may have to maintain a higher minimum balance or set up direct deposits of several thousand dollars per month.
Read more: The 10 best high-yield online checking accounts available today
Some banks and credit unions have very specific requirements to qualify for a premium checking account. You may have to do one or more of the following to qualify:
Maintain a set minimum balance
Make a minimum number of deposits each month
Make a minimum number of electronic transactions each month
Keep a minimum amount on deposit at the bank
But each financial institution is different. If you shop around, you’ll find a wide range of requirements, and some are much easier to fulfill than others. For example, to open a Premium Checking account at Golden 1 Credit Union, you only need a $25 minimum opening deposit.
Just because they’re called “premium” doesn’t automatically make these checking accounts better. Here’s an overview of the best and worst features of premium checking accounts.
Higher interest rates: Depending on the account, some or all of your deposit amount might be eligible to earn a rate that’s competitive with high-yield savings accounts or certificates of deposit (CDs).
Premium perks: You may get a handful of unique perks that don’t come with regular checking accounts.
Up-front bonuses: Some premium checking accounts have account-opening bonuses.
Special requirements: You usually have to meet one or more specific requirements to access high interest rates, special perks, or get your fee waived each month.
Rate tiers: Many premium checking accounts have rate tiers, meaning that the highest rates only apply to a portion of your deposit.
Variable rates: Premium checking accounts have variable rates, meaning they can change (and drop) at any time.
Deciding whether a premium checking account is right for you comes down to weighing the costs against the benefits.
Premium accounts often include perks like higher interest rates, waived or reimbursed bank fees, and personalized customer service. However, these accounts typically come with monthly maintenance fees unless you maintain a high balance or meet other qualifying requirements. If you can easily keep that balance and regularly use the extra features, the benefits may outweigh the fees.
If you don’t maintain large balances or need a lot of extras when it comes to your banking, a standard or free checking account might be the smarter choice. For most people, premium checking makes sense only if it saves money or provides tangible convenience that fits their financial lifestyle.
