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The Best High-Yield Checking Accounts Of 2021 - YouTube
Channel: The College Investor
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- Choosing the right checking account
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should be made with some
careful consideration.
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You'll obviously wanna
avoid unnecessary fees,
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but also look for a checking account
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that comes with an interest rate
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so that you can be earning money
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on your money in that checking account.
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In this video, I'm covering the top 10
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high yield checking
accounts available to you
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so you can make the right
choice for your finances.
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Hey, it's Justine with
The College Investor,
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investing and personal
finance for millennials.
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So today I'm gonna be covering the top 10
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high yield checking accounts.
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I'm going to be covering
the basic features,
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the associated interest
rates, and some pros and cons.
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So let's go ahead and hop into the list.
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The first checking account
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that you'll wanna take a
look at is from OnJuno.
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So you can earn up to 2.15% on deposits
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and 5% cash back using
their checking account,
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which I think is so awesome.
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You can also connect your checking account
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to Apple Pay or Google Pay,
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which makes this really user-friendly.
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You can just simply whip out your phone
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and pay for various transactions.
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There's no minimum
balance, no hidden fees,
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and you can withdraw money at any time.
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You can also connect to
other money or investing apps
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such as Venmo, Robinhood,
Acorns, and more,
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and also connects with
Allpoint and MoneyPass ATM's.
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Now, the 5% cash back feature
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that they are touting on their website
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is up to $500 with a max
reward of just $25 per year.
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So there is a cap on that,
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and I would consider that
maybe a little bit of a con,
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but an extra $25 a year, maybe
it could be worth it to you.
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Now, in order to get
that 2.15% interest rate,
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you have to have a
balance of up to $5,000.
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After the $5,000 mark, the 2.15%
interest no longer applies.
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So that could be a little bit of a con
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if you are holding balances
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more than $5,000 in your checking account.
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The next checking account
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to take a look at is with GO2bank.
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GO2bank is a mobile bank
account that you can access,
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download it on your phone.
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What's great about this one
is there is no monthly fees,
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but you'll have to have an
eligible direct deposit,
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otherwise, $5 per month
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if you do not have those
eligible direct deposits.
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Now, some fees that they
want to include here,
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if you end up doing a
lot of cash deposits.
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So if you work in a restaurant,
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you make lunch tips and
you wanna do cash deposits,
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you can do that at various
participating retailers.
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However, there's going to
be about a $5 retail fee
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associated with those cash deposits,
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because GO2bank is a mobile bank
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and there's not physical locations
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where you can do those cash deposits.
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A couple other features of GO2bank
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is you can get paid up to two days early
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with their ASAP direct deposit,
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and then you can also get
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up to $200 in overdraft protection.
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Another feature that I
thought was really interesting
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was you can earn up to 7% cash back
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when you purchase eGift cards
using your GO2bank account,
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and it has no monthly fees
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so long as you receive direct deposits
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via payroll or government benefits.
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Otherwise, you're gonna have
that $5 per month charge.
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Now, GO2bank does come
with a savings account,
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and this is why we consider
it a high yield account,
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because that savings account
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is going to be 1% on
balances up to $5,000.
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So a couple things that you wanna know
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is that you'll have to use this
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as your primary checking account
with those direct deposits
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in order to waive that $5 monthly fee.
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And then a con with this account
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is you're only earning 1% up to $5,000.
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Any balances outside
of that and above that,
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you're not going to be earning
that high interest rate.
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The next checking account to
take a look at is with Radius,
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which is now part of LendingClub,
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so you might see that as
you click on this link.
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But there is a checking account
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where you can earn more than 1% cash back.
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You can earn interest,
there's ATM fee rebates,
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and then no monthly or hidden fees.
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Now, this is all with their
reward checking account.
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And there are some pretty cool features
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that you'll wanna take a look at.
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So the basic features of rewards checking
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is that you can earn 1%
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or more cash back on various purchases.
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So it kind of operates like
a cash back credit card.
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You'll earn a percentage
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for any transactions
when you're dining out,
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at a health store, or various retailers,
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and that can change throughout the year.
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There's also no ATM fees and
no minimum account balances,
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which makes this a really
easy checking account to have.
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Plus, you can receive your paychecks
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up to two days early with direct deposit.
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Now, the interest rate on
these accounts with Radius
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is 0.15% on balances of $100,000 or more.
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But if that's not you,
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then you'll be earning
0.1% APY on balances
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between 2,500 and up
to that $100,000 mark.
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Now, what's nice about this
is their cashback program
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really eliminates the need
for a cash back credit card,
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but the interest rate really isn't as high
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as some of the others on this list.
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You'll also need a minimum of $2,500
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in order to earn that interest.
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Anything below that, you're
not going to be earning.
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The next thing to consider
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is rewards checking with Axos Bank.
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So rewards checking has
no minimum balances.
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You get unlimited ATM fee reimbursements
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and no monthly fees, just
$50 to open the account.
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Now, you can earn up to 1.25% APY
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using their rewards checking,
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which actually is a
pretty high interest rate,
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but you wanna take a note here down below.
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In order to receive that 1.25%,
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there are a few requirements.
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First, you'll have to receive
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monthly direct deposits of $1,000 or more,
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use your debit card for a total
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of 10 transactions per month,
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and then again, five more times,
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so a total of 15 transactions per month.
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I'm not sure why they didn't
just like lump that together.
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But bottom line is you'll
need to be using this
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as your primary go-to card
for everyday purchases.
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I mean, 15 transactions per month.
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Maybe you can do that, but
if you have other accounts,
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it might be hard for you
to earn that interest rate.
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The next one to take a look at
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is the advantage checking
account with Nationwide.
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Now, you can earn .9% APY,
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and there's no monthly maintenance fees,
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zero minimum balance requirements,
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and that interest rate is
compounded daily, which is nice.
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Some banks compound their interest rates
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quarterly or yearly,
so this is kind of nice
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that they are doing this upfront.
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Now, in order to get
that .9% interest rate,
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you'll need to have direct deposits
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coming into this account
totaling $1,000 or more.
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And you need to have
10 transactions or more
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through your advantage checking debit card
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and those transactions
have to be at least $3.
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The next high yield checking account
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you'll wanna take a look at is with Varo.
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So Varo does not come with
any monthly or transfer fees
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and there's no minimum balance to open.
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Plus, it connects to
Allpoint ATM locations,
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you can receive your paychecks
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two days early with direct deposit,
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and then you can do cash
deposits at retail stores,
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and of course, connect to
Apple Pay and Google Pay
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among others such as
Venmo cash app and PayPal.
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Now the interest rate that comes
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with the Varo account is 0.4%.
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And that actually connects
with the savings account.
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So when you open your
checking account with Varo,
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it's also going to open
up the savings account,
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and then you can actually earn up to 2.8%
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in that savings account
when you're connected
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to the regular checking account.
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But there's a lot of requirements
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in order to earn up to 2.8% in interest.
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You have to have five
transactions per month
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and receive $1,000 or
more in direct deposits.
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Plus, in your savings account,
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you have to have a balance
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of more than zero but less than $10,000.
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So really, you're only earning
that high interest rate
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on balances of less than $10,000.
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The next high yield checking
account is with Chime.
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With Chime's checking account,
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you can receive paychecks
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up to two days early with direct deposit.
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There's no minimum balance required
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and it just takes $0 to
open, no monthly fees,
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and it does connect to MoneyPass
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and Visa Plus Alliance ATM's
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so that you can withdraw
cash from your Chime account.
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It also has this really handy
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roundup feature to transfer change
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from your checking to
your savings account.
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And you'll wanna pay attention to that,
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because with the Chime checking account
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and the savings account,
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you can earn 0.5% on that savings account.
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And with the roundup feature,
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you can automatically
transfer that money over
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so that you're earning
interest, hence high yield.
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So this one is a
no-frills kind of account,
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which I really like.
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There's no minimum account
balances, no monthly fees.
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And it has that handy roundup
feature, which is a plus,
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but you'll need that savings account
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connected to the checking account
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in order to access the interest rate.
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The next one to consider
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is the checking account with Wealthfront.
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So Wealthfront has really been known
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for their investing platform,
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but they also have a cash
account and that can earn .35%
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and it has all the handy features
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much like on this list
where you can get paid
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up to two days early with direct deposit
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and there's no account fees.
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With Wealthfront, it just takes a dollar
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to open your cash account.
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And if you're already using Wealthfront
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as an investing platform for
all of your investing needs,
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then you can just simply transfer
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the cash from your cash account
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into your investing account and vice versa
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if you are working on taking money
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out of your investing account as well.
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So it's a handy feature if
you're already using Wealthfront.
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So if you're really into sustainability
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and helping out the environment,
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then you should definitely take a look
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at the checking account with Aspiration.
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Aspiration has a different type of model
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in which you can help the
earth, which is so great.
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So you can get 5% cash back on
socially conscious spending,
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which I think is really cool
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if you are shopping at
socially conscious retailers.
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And then also they have
this reforestation plan.
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So anytime you want to
turn on this feature
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called Plant Your Change
for all of your purchases,
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that portion, the roundup portion
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can help with reforestation projects.
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So you can earn 1% on
your Aspiration account.
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However, you'll have to sign up
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for the Aspiration Plus version,
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which is actually $15 per month.
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But with that $15 monthly fee,
everything else is included.
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So if you are wanting something
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that's environmentally friendly
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and you're wanting to work
with a company in a bank
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that is sustainable and
has that top of mind,
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but $15 per month can be kind of steep.
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Also, if you just do the
regular free Aspiration account,
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you won't be earning
that high interest rate.
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And also, I noticed that
they kept saying you can pay
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whatever fee you think
is fair, even if it's $0.
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So they're still kind of pushing you
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to pay a monthly fee for the free version,
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which I thought was a little off-putting.
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The next checking account to
consider is with M1 Finance.
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Now, M1 Finance is an investing platform
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and they have integrated
a checking account
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into their platform as well.
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And you can earn 1% APY
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and 1% cash back on qualified purchases.
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Now, in order to access
this 1% interest rate,
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you're going to have to
get the M1 Plus membership.
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Now, with the M1 Plus membership,
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you'll get that 1% APY
on the checking account
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and the 1% cash back, but you'll
have to pay $125 per year,
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which really kind of breaks
down to around $10 per month.
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So if you're willing to pay $10 per month,
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then you're going to
get that interest rate.
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You'll also have your ATM fees covered
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up to four times per month,
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and there's no minimum monthly balances
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and no monthly fees
associated with your account
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other than the annual fee of $125.
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So if you already invest with M1 Finance,
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then this is a really easy
checking account to add on.
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And if you're willing to
pay that $10 monthly fee,
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then you're going to get access
to that 1% interest rate.
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So many of these checking accounts
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as I was going through them
have a lot of things in common.
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First, they connect to
things like Apple Pay
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or Google pay, Venmo, PayPal, and more.
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A lot of them come with no fees,
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no monthly fees, no
monthly maintenance fees.
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And a lot of them come with a
side-by-side savings account
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in which you can earn that high interest,
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which is why we detailed this
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as a high yield checking account list.
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So some of them are just
with the checking accounts,
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and then some of them partner
up with a savings account
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in which you can earn
that high interest rate.
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But whatever decision that you choose,
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just keep in mind to
how you're going to be
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using this account with your lifestyle.
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Do you use Apple Pay quite a bit?
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Are you looking to use this
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as a supplemental checking account
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in which you're not going
to be doing direct deposits?
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If that's the case, you
could be slapped with fees
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or you might not be able to take advantage
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of various interest rates
because a lot of these accounts
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do have direct deposit requirements.
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Take a look at their requirements.
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If you want more information
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on the best high yield
checking accounts and more,
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be sure to visit thecollegeinvestor.com.
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