Traditional checking accounts make it easy to manage your money. You can make everyday purchases, pay bills, write checks and withdraw cash with a debit card. Premium checking accounts have the same capabilities but offer other perks, often in exchange for a fee.
Introduction to Premium Checking Accounts
This guide looks at the benefits of opening a premium checking account. It also covers eligibility requirements, account specifics and how to move forward with applying for a new account, along with mistakes to avoid.
The Benefits of a Premium Checking Account
Here are some key perks you’ll enjoy when opening a premium checking account.
Higher Interest Rates
These accounts often come with higher interest rates compared to their standard counterparts. In fact, some traditional checking accounts fail to pay interest, so you could earn a return on your money by opting for a premium checking account.
Lower or No Fees
It’s not uncommon for premium accounts to come with monthly maintenance fees. Fortunately, most financial institutions offer fee waivers if you maintain a minimum balance. You may also find that ATM fees, overdraft or NSF fees, and foreign transaction fees are lower or waived with premium checking accounts.
Concierge Services
Concierge services are another advantage of premium checking accounts. More specifically, you’ll likely have access to personalized financial advice, assistance with travel booking, special event access and more.
Enhanced Security Features
Premium checking accounts often come with added security features, including enhanced fraud protection, identity theft safeguards and real-time alerts. This perk gives you peace of mind, knowing your personal and financial data is well-protected.
Eligibility and Requirements
You’ll typically need to meet specific balance and credit score requirements to open a premium checking account.
Income Requirements
You may need to meet specific income thresholds to qualify for a premium checking account. More specifically, you’ll likely need to have a certain amount in monthly direct deposits. The financial institution may verify your income through recent pay stubs or by analyzing your direct deposit history.
Minimum Balance Requirements
In many instances, premium checking accounts also come with high minimum balance requirements – either daily in a single account or combined in linked accounts. Failure to meet this requirement generally means you’ll pay a monthly maintenance fee.
Credit Score Considerations
Some financial institutions conduct soft credit checks when you apply for a premium checking account. You don’t need perfect credit to qualify, but serious credit issues can lead to a denial, or the bank or credit union may offer you a standard checking account.
Comparing Premium Checking Accounts
Major Banks Offering Premium Accounts
Bank of America: Advantage Relationship Banking
- Monthly maintenance fee: $25 (eligible for fee waiver)
- Annual percentage yield (APY): up to 0.02%
- Customer service: In-person and by phone
- Other perks: fee-free domestic wire transfers and stop payments
Chase: Premier Plus Checking
- Monthly maintenance fee: $25 (eligible for fee waiver)
- Annual percentage yield (APY): 0.01%
- Customer service: In-person and by phone
- Other perks: Free checks and ATM fee waivers for out-of-network withdrawals (subject to limits)
Wells Fargo: Prime Checking
- Monthly maintenance fee: $25 (eligible for fee waiver)
- Annual percentage yield (APY): 0.01%
- Customer service: online chat, in-person and by phone
- Other perks: discounts banking services and ATM fee waivers
How to Open a Premium Checking Account
Once you’re ready to take the next step, here’s how to apply for a new account.
Application Process
Start by exploring what premium checking accounts at traditional banks, credit unions and online banks have to offer. Create a shortlist of at least three options, compare key features and select the best fit.
Next, you’ll apply online or at a branch (if applicable). You could receive a decision right away, but it may take a few days to hear back. If approved, prepare to initiate a cross-account transfer if you haven’t already done so to fund your new account. Or you can visit a branch (if available) to make an opening deposit.
Required Documentation
When applying for a premium checking account, you’ll generally need to provide the following documents:
- A copy of your photo ID (i.e., driver’s license, passport, state-issued identification card)
- Proof of address (i.e., utility bill, lease agreement, mortgage statement)
Some financial institutions may request additional documents, like recent pay stubs if there are income restrictions. Having the required documents handy can help speed up the application process.
Online vs. In-Person Opening
As previously mentioned, you can open a premium checking account in person or online. If you choose the latter, the process is convenient and can be completed from the comfort of your home. But if you choose to open an account at a physical branch, you’ll need to speak with a banker.
Managing Your Premium Checking Account
Here are some tips to manage your premium checking account once it’s open.
Maintaining Minimum Balance
Doing so can help you avoid monthly service fees. Consider setting up direct deposit to meet this requirement. Also, check your account often to ensure your balance stays above the required level.
Utilizing Concierge and Other Services
Be sure to leverage concierge services to help you save time and money. You might also have access to dedicated customer support with extended hours, shorter wait times and other perks.
Monitoring Fees and Charges
Even with premium accounts, fees can still add up. Look out for fees related to ATM transactions, overdrafts and international transactions.
Also, review your monthly account statements carefully to identify any unexpected charges.
If you see any errors or unexpected fees, contact your bank immediately to get them resolved.
Common Mistakes to Avoid
Despite the benefits you’ll enjoy, you want to avoid these mistakes to get the most out of your premium checking account.
Ignoring Fee Structures
Again, these accounts often come with monthly maintenance fees that can be waived if you meet specific criteria. Also, be mindful of overdraft fees, ATM withdrawals and wire transfers.
Not Meeting Minimum Balance Requirements
Premium checking accounts usually require you to maintain a high balance. If your balance drops below this minimum, you may incur monthly fees. Consider setting up direct deposit or automatic transfers from a savings account to avoid this.
Overlooking Additional Perks and Services
Many premium checking accounts offer perks like waived fees, discounts on loans, and access to priority customer service. These accounts might also come with financial advisory services.
You could miss out on significant benefits if you neglect to take advantage of these extras. Review your account’s features and services frequently to take full advantage of what’s offered.
Conclusion: Is a Premium Checking Account Right for You?
Premium checking accounts offer several attractive perks but have higher minimum balance requirements. If you can maintain the required balance and the benefits outweigh the cost, they could be right for you.
Frequently Asked Questions (FAQs)
Premium checking accounts provide extra services and perks. They may offer higher interest rates, free checks, travel perks, higher daily withdrawal limits, overdraft protection, waived or reduced fees for out-of-network ATM withdrawals, and priority customer service.
Yes, most banks allow you to downgrade to a regular checking account if you find that a premium account no longer suits your needs. You typically need to contact your bank and request the change to do this.
Premium checking accounts can be worth the additional requirements if you frequently use the extra features and benefits. They might save you money in the long run if you travel often and benefit from waived foreign transaction fees, want access to personalized customer service, and regularly maintain a high balance that typically earns higher interest rates.
