bank rates

New Checking Account Is Savings Worthy

Here’s a checking account that doesn’t charge fees and pays way above average interest without requiring you to jump through a bunch of hoops every month.

Boston-based Radius Bank is billing its new Hybrid account as a cross between a savings account and a checking account.

It offers 1.00% on that portion of your balance above $2,500.

If, for example, you maintain an average monthly balance of $10,000, you’ll earn nothing on the first $2,499 and 1.00% on the remaining $2,500 to $10,000. That’s a blended APY of 0.75%.

It won’t make you rich, but it’s far better than most checking accounts, which pay 0.1% if you’re lucky.

There’s no limit on how much money you can keep in a Hybrid account, and unlike a rewards checking account, there are no minimum number of debit card purchases, online bill payments or other requirements to earn that rate.

You do have to receive a debit card with the Hybrid account, but there’s no requirement that you actually use it.

You also need to sign up for eStatements and enroll in online banking, but there are no demands that you use the online banking each month.

Just by having a debit card and signing up for online banking and eStatements, you’ll earn the 1.00% on balances above $2,500 and get all ATM fees reimbursed.

The account is available to anyone nationwide and can be opened online with as little as $10.

It comes at a time when only the best nationally available savings and money market accounts are paying 1.00% APY.

Savers should be on the lookout for short-term deals like this to stash cash ahead of the Fed raising interest rates, probably in the fall.

Radius is the new name for First Trade Union Bank, and it has a single location in Boston.

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