Now, the expiration of the expanded coverage means that those checking account balances will be added to any amounts in savings accounts and other accounts for the purpose of determining the coverage limit. If the resulting total is over $250,000, coverage on any or all of those accounts may be incomplete.
Reasons for separating your accounts
- No maintenance fees. Especially for large accounts, you should not be paying a monthly fee.
- An extensive ATM network. This can help you avoid fees for using another bank's ATM.
- Statement options that fit your needs. If you prefer paper statements, choose a bank that won't charge you extra for them. If you prefer to bank online, find a bank that offers the kind of online features you want.
- Competitive current rates. In general, you'll find that online banks tend to offer higher rates, according to recent MoneyRates.com America's Best Rates surveys.
- A history of high rates. Since savings account rates can be changed at any time, look for a bank that has consistently offered high rates, so they will be likely to maintain competitive rates going forward.
- No rate expiration. Don't be drawn in by short-term teaser rates. Again, a strong ongoing rate is what you want.