What Is a Premium Checking Account?

A premium checking account is a specialized bank account designed for customers who maintain high balances and use a variety of banking services. These accounts come with exclusive perks, such as earning interest, reduced fees, and enhanced customer service. However, they also require higher minimum balances and may have higher monthly fees.

Pros and Cons of Premium Checking Accounts

Pros

• Earn Interest: Unlike standard checking accounts, premium checking accounts earn interest, which can help grow your balance over time.
• Fewer Fees: Premium accounts often waive fees for services like wire transfers, non-bank ATM use, and foreign currency exchanges.
• Lower Loan Rates: Customers may qualify for reduced interest rates on loans, such as mortgages and auto loans.
• Financial Services: Access to discounted investment advice and financial planning services.

Cons

• High Minimum Balance: Typically, you need to maintain a balance of $15,000 or more, which may not be feasible for everyone.
• Low Interest Rates: The interest rates on premium checking accounts are often lower than those offered by high-yield savings accounts.
• High Maintenance Fees: If your balance falls below the required minimum, you may incur high monthly fees.

Is a Premium Checking Account Worth It?

Premium checking accounts can be beneficial for individuals who already maintain large balances across multiple accounts and frequently use banking services. However, for those who cannot consistently meet the high balance requirements, the fees may outweigh the benefits.

If a premium checking account doesn’t seem right for you, consider alternatives like reward checking accounts, interest-bearing checking accounts, or high-yield checking accounts. Each of these options offers unique benefits that may better suit your financial needs.

How to Open a Premium Checking Account

Opening a premium checking account is straightforward. You can usually do it online or by visiting a bank branch. You’ll need to provide:

• Government-issued photo ID
• Social Security number or taxpayer identification number
• Proof of address
• Birthdate and contact information

If you already have an account with the bank, switching to a premium checking account can be even simpler. Just ensure that your combined account balances meet the minimum requirement.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of finding the right financial products to meet your needs. Whether you’re considering a premium checking account or need assistance with a mortgage, our team is here to help. Call us today at 213-732-3074 for personalized service and expert advice.