High Yield Checking Accounts are Still Solid

High yield checking accounts are a relatively new concept.  They showed up in force a couple of years ago and haven’t shown any signs of fading away into financial history.  Rates paid by these accounts have remained high and they continue to gain popularity.  People find them a convenient way to earn a little interest from their money without giving up the convenience offered by a simple checking account.  These accounts will of course vary in their interest rates according to the markets and the economy as a whole, but the trend remains strong.

A few banks have dropped the interest rate paid on these accounts, but those banks mainly fall into the category of distressed institutions.  The trend is for the rates paid on these accounts to go up.  Almost all banks surveyed, that were not on the federal governments list of distressed banks, have raised the interest rate they are paying on checking accounts.  The average now lies somewhere around 5% or just slightly less.

With the uncertainty in the US and world financial markets, it’s impossible to say where these accounts will be a year from now or even a few months down the road.  But compared to other interest paying accounts they still seem to be doing very well and are becoming increasingly popular.  In the last year, the average rate on these accounts as a whole has dropped approximately 1%, but other types of accounts have seen more drastic drops in interest rates.

Anyone looking for a place to put their money for it to earn them a little extra is encouraged to check out these accounts.  They are now common enough that nearly all banks offer some type of high yield checking account.