Most people have, at the very least, a simple checking account these days. We no longer live in a cash economy and making payments via card or direct from an online bank account is the norm. Whereas our grandparents were paid in cash and bought everything they needed using cash, we would be lost without a checking account, savings account, and a host of other financial products. But what about premium banking products – do you really need a premium checking account, or can you manage with a basic everyday account instead?
What is a Premium Account?
Premium bank accounts are marketed at high net worth individuals. Anyone can open bank account, but not everyone is eligible to open a premium bank checking account. A good example of a premium checking account is the Elite checking account offered by BB&T. Like many premium accounts, it offers a higher rate of interest, free and discounted checks, bonus rates on IRAs and CDs, and other valuable benefits.
Each bank has its own eligibility criteria, so check the terms and conditions before you apply for an account with your local bank or an online bank. In general, a premium account will require that you maintain a minimum balance and deposit a higher amount of funds to open the account. You may also need to have another high-balance account with the bank, such as a mortgage account or a savings account.
There are some perks, however, which can make this type of account very attractive if you are reasonably wealthy. For starters, you can often avoid monthly account fees if you have an account balance above a certain level. Interest rates on balances are also higher than regular bank accounts. You may also have access to a personal banking advisor, who can help you manage your wealth and advise you on related banking products. Other perks include no-fee safety deposit boxes at the bank, which are useful if you want to store expensive items such as jewelry.
Do I Need a Premium Checking Account?
Only you can answer this question. It is wise to sit down with the information related to the bank account and weigh up the pros and cons. In general, if you have a healthy balance and you don’t think you will need to withdraw your money, a premium bank account is a good choice. The more money you have in your account, the more compound interest you stand to earn, so if you are the type of person who likes to keep several thousand dollars in a checking account, a premium product will work for you.
The most important thing to pay attention to are the fees. Account fees between different banks, so examine the product details and find an account where the fees are low. There is no point earning extra money in interest if the account fees eliminate any gains you make each month.
If you need any further advice, book an appointment with a banking advisor, so they can go through the finer details of the account.