Some of our friends told us last week that a new bank just opened in our town, offering 4% interest on checking accounts. Our checking account is currently earning about 1%.
There are several requirements (of course!), including having a monthly bill pay or direct deposit, and using the debit card twelve times a month.
We currently put virtually everything on our credit card in order to maximize our airline rewards, so this would mean making a concerted effort to use the debit card 12 times a month (I can just see myself buying twelve bananas, one at a time).
Basically, we would need to switch over entirely from ING because without having direct deposit and our checking account there, it wouldn't be feasible to make purchases from that account, and if our savings and emergency funds aren't there, we won't be making enough money to make it worth switching.
Normally, I am willing to jump through a lot of hoops to make or save money, but this one seems like a lot of effort and some major changes to our banking system. Especially when it is very probable that in a year or so, their interest rates will drop significantly. I'm kind of at an impasse on this one right. . .
What do you think?