It’s always nice to get more for your money. Many checking accounts offer rewards that can help you grow your money or earn other perks, usually with just a little planning. At Capital Credit Union, we have designed our four different rewards checking accounts to be as unique as our members, whether you’re just starting out, starting over, or looking to earn interest or enjoy other incentives. Benefits like getting cash back, credits toward streaming services, discounts on loans, and more can help you make the most of your checking account.
No matter where you have your rewards checking account, though, there are strategies you can use to make the most of high-yield and incentive-based checking options. We’ve outlined a few of them below.
Consistently Meet Monthly Transaction Requirements
Make sure you understand the specific requirements associated with the rewards checking account you choose so that you can be sure to fulfill them monthly. Refer to your specific account terms for full conditions. Some of the most common requirements include:
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Completing a minimum number of transactions with your debit card every month
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Enrolling in and receiving eStatements
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Maintaining a minimum daily balance
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Using direct deposit
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Spending a certain amount per month on debit purchases
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Logging into online banking once a month
If this seems like a lot to remember, don’t panic. Taking a few simple steps will take care of many of these requirements without any extra effort. For instance, you should automate transactions whenever possible. When you set up automatic payments for utility bills, subscription services, and so on, these will count toward your debit card transactions and monthly purchases.
Other strategies include:
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Put a reminder in your phone to log in at the beginning and end of every month to keep track of your finances
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Use your reward debit card instead of your credit card for small purchases, like your morning coffee
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Set up direct deposit of your paycheck (see section below)
To make it easier, especially in the beginning, you might consider using a budgeting app or making a spreadsheet with the monthly requirements, checking them off as you meet them.
Set Up Direct Deposits or Recurring Electronic Transfers
One common requirement when you have a rewards checking account is that you complete at least one direct deposit or transfer into your account monthly. The easiest way to meet this condition is to set up direct deposits of your paycheck. If this isn’t an option, though, you can also set up a monthly electronic deposit, known as an Automated Clearing House Network (ACH) transfer, from a separate account like a savings account or from a payment app.
Be Aware of How Your Balance Might Affect Rewards
Typically, rewards checking accounts offer benefits like higher interest rates, cash back, or other rewards, but the extent of those rewards may be limited by or based on the balance in the account or how much you spend each month. To maximize your benefits, pay attention to any balance requirements and make adjustments in your financial habits to keep earning.
For instance, rewards accounts with higher interest rates might offer tiered benefits where you earn higher and higher rates as your balance grows. CCU’s ChaChing Checking account offers this feature. To earn the best interest for your money, pay attention to balance thresholds and keep your account total above the desired amount. If you think you might dip below the required minimum balance, consider transferring funds from another account to maintain your balance and receive the highest interest possible. Rates are subject to change. Refer to our current rate sheet for the most up-to-date options.
On the other hand, you might only be able to earn a higher interest rate up to a certain balance. To continue to earn more interest on the money in the account, keep your balance below the cap. Whenever your balance gets close to this amount, transfer excess funds to a separate account, such as a high-yield savings or money market account. You may even have the option to set up automatic transfers any time your balance hits a certain amount.
If you have a cash back rewards account, you might only receive cash back up to a set dollar amount of purchases each month. To get the most from your benefits in this case, consider spreading larger purchases out over different months. For instance, if you have already reached your cap one month but need to buy a new couch, postpone your purchase until the next month to ensure you receive cash back for your purchase.
Take Advantage of Linked or Companion Products
If your credit union offers other financial services or companion products like credit cards, savings accounts, loans, money market accounts, or certificates, you can often enjoy additional benefits and perks by linking these to your rewards checking account. Product benefits may vary and are not contingent on account opening unless otherwise disclosed.
For example, if you have a rewards checking account, you might also have access to lower interest rates on loans or credit cards. You may also have the option to link your rewards checking account with your savings account for overdraft protection.
Avoid Fees and Hidden Costs
One way to make sure you reap all the potential benefits of your rewards checking account is to protect yourself from fees and hidden costs eating away at what you’ve earned. ATM fees are common at most financial institutions. If possible, choose a rewards checking account that doesn’t charge fees for using out-of-network ATMs or that reimburses the charges.
Be aware of any overdraft or inactivity fees as well as minimum balance and transaction requirements. As noted above, consistently meeting your monthly transaction requirements will help you avoid many fees and hidden costs. Refer to the fee schedule for full details.
Monitor Your Accounts Monthly
Rewards checking account benefits are typically based on monthly activity, so they reset every month. Based on when the new month starts for your account (beginning, middle, or end of the month), set calendar reminders on your phone or on your computer to log in and check that you are meeting all your requirements for the month.
Mobile banking apps make it easy to check in online and verify debit card transactions and deposits, so consider taking advantage of these tools as well. Be sure to go over your eStatements and read any communication from the credit union to make sure you’re aware of any changes to the terms or requirements of your rewards checking account.
Earn Rewards with Capital Credit Union Checking
Capital Credit Union provides members with access to a wide range of financial products and services, including rewards checking accounts. We believe in offering the financial knowledge and tools you need to be successful wherever you are on your financial journey.
When it comes to checking accounts, you can choose one of our four options that works best for you. ChaChing Checking gives you great interest rates on your balances. MyDebit Rewards has options for cash-back rewards or credits toward streaming services. MyChecking is perfect if you’re looking for a simple, straightforward checking account with no monthly fees and no qualifications. A Fresh Start checking account is just the solution for members who need a reset on their finances.
Whatever you’re looking for, we make it easy to get started with a call, click, or visit to speak with one of our representatives. Find out how we can help you manage your finances today!
Features vary by account type. Fees may apply. Refer to full account terms and disclosures for details.