For those with large amount of savings, it can be difficult to keep all of your liquid money in reward checking accounts. Most reward checking accounts limit the top rate to balances of just $25,000. You'll need to open multiple accounts if you have larger savings, and that requires more debit card purchases per month. If that's too much of a hassle, you can just open CDs at Ally Bank as I described yesterday.
It is becoming more difficult to have multiple reward checking accounts with high yields. As I reported last week, several banks will reject your reward checking application if ChexSystems indicates you have opened too many recent accounts. Banks say they want people to use their reward checking accounts as their "primary checking account". They probably hope that those customers will spend more with their debit cards.
Another problem is that banks and credit unions are reducing the balance cap which qualifies for the top rate. The latest example is Consumers Credit Union. A reader reported yesterday that they will be reducing the cap from $25K to $10K effective November 1, 2010.
It's still possible to receive high yields for large balances if you have many reward checking accounts. But it's getting harder.
That leads me to this week's poll question: How many active reward checking accounts do you have?
I consider active reward checking accounts as accounts in which you are meeting the monthly requirements. Those that you no longer use (perhaps due to a rate or balance cap cut) should not be considered.