Alternative Checking Accounts With A Debit Card And Bank Credit Cards–Strategies Consumers Use For Purchases

We have seen, with the fallout that has occurred from proposed fees that banks had recently planned to implement, there are still consumers who are looking for alternatives to a major bank’s checking account, which at the present time seemingly will not offer any new fees from these major lenders who had previously proposed doing so, but there is still hesitation on the part of consumers when it comes to staying with certain financial institutions. While there are those who have been loyal to these banks despite the fact that there has been an uproar in previous weeks, some consumers are looking for checking accounts that will offer a debit card but also a higher interest rate as some credit unions or online financial institutions may be in a position to help consumers meet this need. Yet, there are also arguments that some consumers are turning to bank credit cards as a way to meet their financial needs as these cards can offer some protection for consumers.

Understandably, changing a bank is not always an easy task nor do customers always want to leave their financial institution, but for those who have been researching high interest checking accounts, as an example, many are seeing rates on these accounts that may far exceed what they have received from more traditional lenders as again online institutions and even credit unions have been sources of high interest accounts when it comes to helping consumers earn more on their checking deposits. Yet, even those who are in a position where they use their card often but may not necessarily change financial institutions, there are some who feel that responsible use of a credit card offered by their bank may help offset any costs that come with their checking account.

Some consumers may be able to get a bank credit card that offers cash back rewards, as one example, and there are also benefits that may come from using a credit card, as well as protections that can guard consumers against excessive fees or sudden interest rate changes, which would lead to unexpected costs in some cases. Consumers who are in a position where they can handle a credit card responsibly have, in some cases, used this type of account as an alternative to a checking account, despite the fact that some high interest checking accounts are offering rates that are bringing in an APY of as high as 1%, or more depending on the location and financial institution.

However, the needs that a consumer has in terms of using their card will impact whether a checking account or credit card will be best, but again some consumers are turning to credit cards instead of a checking account as they can pay their bills or make purchases throughout the month and rather than have these funds simply withdrawn from a checking account they often will pay their bill in full at the end of the month, which would help them avoid interest rate charges as well. Yet, consumers will have to make sure that they can qualify for a decent rate if they choose a credit card, as some consumers often have a problem with carrying a balance on their card and, this will obviously lead to higher costs when a higher rate is in place.

While some consumers are looking at the benefits of alternative checking accounts like those with credit unions or either smaller institutions, there are some who feel that simply switching to a credit card rather than a checking account can be helpful, but again these actions by consumers in the past are not necessarily going to be universally beneficial and will necessitate research into offers, a consumer’s personal needs, and what they may qualify for before making any decisions.