Checking Finder Website

[rduell]

I just heard about CheckingFinder.com on the Dave Ramsey show. It's a site that lists high-yield free internet checking accounts.

Any opinions on opening an account with one of these banks?

[responduser]

There is no minimum balance or monthly fee.

Hence, there is no harm in trying.

If you find it good, don't forget to let me know.

[Daylily]

I entered my zip code and the nearest one was 65 miles away. The next closest was 148 miles. What I found interesting was that the site didn't list two local reputable banks that are also offering high yield checking accounts (one at 6% and the other at 5.25%).

I did not read the particulars of any of the banks but I know that with the local banks that I mentioned, there is a requirement of at least one direct deposit a month and twelve signature-based checkcard transactions. I believe there are other requirements.

What I can't figure out is how are these banks offering these rates when my money market accounts and CDs are south of 4% ????

One of the local banks started offering the 6% rate back in April just when other rates were starting to tank. I didn't want to go through the hassle of switching everything over (including my direct deposit) and I figured the rate would only be good for a month anyway. Three months later and they are still going strong. How is this possible?

[cptacek]

Because they are probably lending money out at 9%+ and their mortgage department is still bringing in money.

My sister works at a small, locally owned bank. I asked her if her bank was worried about foreclosures increasing for her bank and if there would be a problem, and she said no, their bank didn't loan out their money like drunken monkeys to anyone who could sign a paper. They actually looked at the person's current debts and income (instead of just credit score, if that) to determine if they would likely pay or not.

I would guess most of these banks with higher interest rates are making a play for people who are disgusted with the publicly owned banks. Once you get people to open these accounts and sign up for direct deposit and start paying all the bills out of them, it is hard for the consumer to change banks.

[noppenbd]

What I can't figure out is how are these banks offering these rates when my money market accounts and CDs are south of 4% ????

One of the local banks started offering the 6% rate back in April just when other rates were starting to tank. I didn't want to go through the hassle of switching everything over (including my direct deposit) and I figured the rate would only be good for a month anyway. Three months later and they are still going strong. How is this possible?

The banks that offer this collect merchant fees when a check card is used as a mastercard or visa. The merchant fees are on the order of 2-3%. In order to get the high interest rate you have to make 10-12 of these transactions a month so the bank is assured of a certain level of income from the merchant fees. Basically the stores you buy from are subsidizing the interest you are earning.

[ScrimpAndSave]

Hey that is very cool...thanks!

[ScrimpAndSave]

Wow one near me is at 5.05! But I love ingdirect.