What Is a Premium Checking Account?

A premium checking account is a higher-tier checking account that offers more features and perks than a regular checking account. These accounts are usually interest-bearing and provide benefits such as waived fees, discounts on loans, and access to priority customer service and wealth advisors. However, they often require a high minimum balance to avoid monthly fees.

Pros of Premium Checking Accounts

Opening a premium checking account offers many benefits. While specific features may vary by bank, the most common benefits include:

• Lower Fees: Premium bank accounts commonly waive out-of-network ATM and overdraft fees and offer discounts on services such as wire transfers, cashier’s checks, and foreign transactions.
• Higher Transaction Limits: These accounts may provide greater flexibility for accessing your money with higher daily or weekly purchase and ATM withdrawal limits.
• Access to Premium Benefits: Customers enjoy a variety of services, such as priority customer service, access to wealth advisors, and global support.
• Ability to Earn Interest: Premium checking account balances typically earn interest, helping your balance grow faster compared to a basic checking account.

Cons of Premium Checking Accounts

There are a few disadvantages of premium checking accounts to consider before upgrading:

• High Minimum Balance Requirements: You’ll need to maintain a higher balance, or you’ll be charged a monthly fee.
• Benefits May Be Tied to Balance: Premium checking accounts with tiered benefits may restrict the top perks to customers with higher balances.
• Interest Rates May Not Be Competitive: Premium checking account rates are often meager, especially when compared with other deposit account options such as a high-yield savings account or a money market account.

Is a Premium Checking Account Worth It?

For those who qualify, a premium checking account offers more on everyday banking. If you’re loyal to your bank, opening a premium checking account offers a variety of benefits. A premium checking account may be worth it if:

• You have multiple accounts at the same bank. Monthly account maintenance fees are waived if you can maintain a high balance across all your linked accounts.
• You make multiple out-of-network ATM withdrawals each month. Many banks waive their out-of-network ATM fees and refund fees charged by other banks.
• You’re considering a new loan. If you have certain loans, like mortgages or auto loans, at the same bank where you have a premium checking account, you may qualify for an interest rate discount that can save you on overall loan costs.
• You want personalized financial or investment advice. Premium checking accounts may offer access to free or reduced-cost financial planning and wealth management services.

How to Open a Premium Checking Account

Opening a premium checking account is similar to a traditional bank account. Here are the steps:

Complete an Application

If you’re upgrading an existing account, you can apply online and start with a pre-filled application since the bank has most of your information on file. Applying over the phone and in-person may also be options.

Make Your Initial Deposit

After you’re approved to open an account, you can make your initial deposit using a bank account or debit card number to transfer money from another account. Because premium checking accounts often require a high minimum deposit, you’ll need to have enough cash on hand—or enough held in linked accounts—to satisfy the minimums.

The Bottom Line

Opening a premium checking account is worth it for those who can meet the high minimum balance requirement and take advantage of the benefits. Otherwise, the benefits may not be worth paying a monthly fee.

A healthy checking account is just one part of keeping your financial life in order. If you’re considering a new mortgage or need financial advice, O1ne Mortgage is here to help. Call us at 213-732-3074 for any mortgage service needs. Our team of experts is ready to assist you in making the best financial decisions for your future.