How to Take Advantage of Banking Incentives

Even more than in the past, banks and credit unions across America are competing for your business. The newest trends in financial centers are banking incentives programs, which offer customers special deals for opening accounts. Much like the cash-back and reward programs on credit cards, banking incentives programs are geared toward saving you money and providing you with maximum benefits. If you aren’t taking advantage of these special promotions, now might be a good time to start looking at new banks.

One of the major complaints that consumers have about banks is the exorbitant fees charged by ATM’s. Unless you can find your bank’s ATM nearby, you’ll wind up paying not only to use the ATM, but also for your bank to process the transaction. Lately, however, banks such as Washington Mutual and Wachovia are launching banking incentives programs that don’t charge their customers for using different ATM’s. Some, such as Washington Mutual, don’t ever charge you for using a different ATM, while others give you a certain number free per banking cycle.

Remember, however, that even if you aren’t charged by your bank for using a different ATM, the banking incentives program doesn’t stop the ATM owner from charging you a fee. It will cut the cost down from about $3.00 to around $1.50, however, so you’re still saving money.

You’ll also find that some Internet banks (such as BankOfInternet.com) will reimburse you for ATM charges at the end of the month. While I don’t know much about Internet banking, it is starting to become a more popular institution in the financial world. In the future, banks and credit unions are planning to team up to provide ATM’s around the country that are free to use by any of those institutions’ customers. You can learn more about that on NYCE.net.

Another type of banking incentive that you might want to take advantage of is the increasingly popular activity rewards programs. Bank of America started it with the “Keep the Change” program which helps you add to your savings account. Each time you make a purchase with your debit card, the bank automatically rounds the charge to the nearest dollar and deposits the remainder into your savings account. They’ll even match those numbers for the first three months, which can start building your savings account.

Activity rewards banking incentives programs are not limited only to Bank of America. You can also check out the Chase “Thank You Network” which works a little like rewards credit cards. Purchases translate into points and can be redeemed at select retail outlets. Most of the activity rewards incentives programs are based on the use of your debit card, which means that you can be earning benefits whether you use your credit card or not.

Banking incentives programs also come in the form of Free Checking, which is something that has been around for a long time, but is beginning to gain steam again. Washington Mutual, for example, offers a banking incentives program that guarantees “Free Checks for Life”. As banks continue to compete for your business, we’ll probably see more financial institutions offering free checking.

And finally, banking incentives programs stretch to money market accounts and other types of investment banking. High yielding money market accounts are becoming the norm and banks are fighting for your business in this area, as well. In fact, BankRate.com advises consumers that right now is one of the best times in the last decade to invest in a money market account, particularly with the larger banks.

Reference:

• www.bankrate.com