“Is a Premium Checking Account Right for You?”

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What Is a Premium Checking Account?

Premium checking accounts are higher-tier accounts that offer more features and perks than standard checking accounts. These accounts typically bear interest and provide benefits such as waived fees, loan discounts, and access to priority customer service and wealth advisors. However, they often require maintaining a high minimum balance, usually around $15,000, to avoid monthly fees. Balances from linked accounts, including investment and retirement accounts, can often be combined to meet this requirement.

Pros of Premium Checking Accounts

Opening a premium checking account comes with several advantages:

• Lower Fees: Premium accounts often waive out-of-network ATM and overdraft fees and offer discounts on services like wire transfers and foreign transactions.
• Higher Transaction Limits: These accounts typically allow higher daily or weekly purchase and ATM withdrawal limits, providing greater flexibility.
• Access to Premium Benefits: Enjoy priority customer service, access to wealth advisors, and global support.
• Ability to Earn Interest: Premium checking accounts usually earn interest, helping your balance grow faster compared to basic accounts.

Cons of Premium Checking Accounts

There are some drawbacks to consider:

• High Minimum Balance Requirements: Failing to maintain a high balance can result in monthly fees.
• Benefits May Be Tied to Balance: Top perks may be restricted to customers with higher balances, even after meeting the minimum requirement.
• Interest Rates May Not Be Competitive: The interest rates on premium checking accounts may be lower compared to high-yield savings or money market accounts.

Is a Premium Checking Account Worth It?

A premium checking account can be beneficial if you meet certain criteria:

• You have multiple accounts at the same bank, allowing you to maintain a high balance across all linked accounts.
• You frequently make out-of-network ATM withdrawals, as many banks waive these fees for premium account holders.
• You’re considering a new loan, as you may qualify for interest rate discounts on mortgages or auto loans.
• You want personalized financial or investment advice, which may be offered at a reduced cost or for free.

How to Open a Premium Checking Account

Opening a premium checking account is similar to opening a traditional bank account:

Complete an Application

If upgrading an existing account, you can apply online with a pre-filled application. New customers will need to provide personal and financial information, such as:

• Name
• Date of birth
• Social Security number
• Physical address
• Phone number
• Email address
• Proof of identity (e.g., driver’s license or passport)
• Employment status
• Income source

For joint accounts, co-applicants must provide the same information. Students need to provide proof of enrollment.

Make Your Initial Deposit

After approval, make your initial deposit using a bank account or debit card number. Ensure you have enough cash or funds in linked accounts to meet the high minimum deposit requirement.

The Bottom Line

Opening a premium checking account can be worthwhile for those who can maintain the high minimum balance and utilize the benefits. Otherwise, the monthly fees may outweigh the advantages.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your financial needs!

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