With so many bank accounts paying “bupkis” (almost nothing) according to comedian Jerry Stiller in Capital One commercials, this bank’s ad looked really promising. They pay an enticing 3.01% interest on checking, and charge no fees at any ATM in the country.
What’s the catch?
Ah, if there were only one catch… but there are many buried in that ureadable footnote that appears to be printed in four point type.
– There is a limit of $25,000, higher amounts earn only 0.25%
– If you don’t follow all the rules/requirements, your rate drops to 0.25%
– You must make at 12 debit card transactions per month, not including ATM
– You must have direct deposit or have a recurring ACH transaction
– You must get your statement electronically
– You must access online banking at least once per month
– If you don’t follow the rules, you will not be reimbursed for ATM fees
All these requirements are likely to trip up all but the most diligent consumer, and will result in an account that really pays “bupkis”.
Accounts like this are called rewards checking, and can be found at various banks around the country. Because the nature of these accounts is so different from the traditional checking accounts we are all used to, banks need to more clearly disclose the unique requirements in order to actually receive the high rate of interest advertised.