Premium bank accounts are usually designed for the most loyal or richest bank customers. However, premium does not always mean best, especially if many free bank accounts offer many unique features.
What is a premium bank account?
A premium bank account is often the most important and expensive bank banking options and often includes excess benefits that you don't usually get in run-of-the-mill accounts.
As a general rule, premium accounts offer benefits for the same bank, such as the APYs' exclusive relationship with its savings products, rates of discounts on bank lending products, or better rewards on bank credit cards.
Other premium perks often include rejected foreign transaction fees, out-of-network payments, unlimited removal or transactions, metal cards, customer support priority, and investment advice.
How much does premium bank accounts cost?
Most premium bank accounts start at $ 25 per monthor $ 300 years. In addition, the need for the need to meet an opening deposit requirement, which often starts at $ 100.
However, some premium accounts offer ways to renounce their monthly maintenance fees, such as handling a certain balance or meeting spending requirements.
Premium accounts are best for honest and highly balanced people
Premium accounts are best suited for high balance customers, which often requires balances to thousands to renounce a monthly fee or take advantage of account benefits. They also make more meaning for the long and loyal customers of that bank, as many of the excess perks you get involve other bank products and services.
For example, the Bank of America's Premium Account, Advantage Relations Banking, offered $ 600 from a Bank of America mortgage mortgage fee, a 0.50% discount rate for Bank of America Auto Bank of America, and a 20% strengthening the interest of savings. These perks make a lot of sense for someone who makes all their banking and lending to the Bank of America, which potentially saves long -term money.
Is the cost of premium bank accounts worth it?
If you consider a premium bank account, you need to weigh the cost against the benefits. Here are some situations where a premium bank account can make sense:
- You are a frequent traveler and the account removes all foreign transaction fees and has a complementary travel insurance.
- You need a loan as soon as possible, and the premium account offers APRS discounts.
- You have many accounts with the same bank, and the premium account removes fees on your other accounts.
- The premium account earns interest, and you regularly hold a large balance.
- Your bank does not have many in-network ATMs near you, but the premium account has rejected all fees outside the network.
- You use bank investment services and the premium account offers discounts on trading and free investment advice.
When a premium account may not be worth it
On Flipside, a premium account may not be worth the cost for everyone:
- You earn a higher apy with another saving account than offered by the premium account.
- You do not meet the requirements to renounce a monthly maintenance fee.
- You will not use perks, such as travel insurance or airport lounge access.
- You do not intend to stay with the long -term bank.
- APY account and your typical balance do not cover the cost to keep the account open.
- You will not need discounts on lending or investment products in that bank in the near future.
Bottom line
Premium accounts are designed for people who often hold high balance on their bank accounts and offer perks that are often exclusively on the bank itself. If you are a fan of your bank's mega and do not intend to move anytime soon, then getting the institution's premium account can unlock many internal benefits that can earn or save you money in the long run.
However, if the monthly fee is too steep for your liking, and you are not the type of person who sticks to a bank for everyone, then paying for a premium account can mean a lot of unused benefits.
