Here’s the Deal with Bank Accounts Rewards. Are They Worth the Monthly Fee?

Are you checking out some different banking options? Understandably, you want to ensure you research the best current accounts offering rewards. However, you also see that you need to pay a monthly fee to maintain these accounts, and you want to know if it’s worth it. The answer to that question depends upon a variety of factors.

How You Get the Rewards
You must consider what you need to do in order to procure the rewards to decide if it is worth your while. For example, maybe you need to make a certain number of transactions each month or keep a certain balance in your account. Decide if those terms are reasonable for you. If you feel that it is unlikely that you’re even going to have the ability to get the rewards in the first place, then the fee won’t be worth it for you.

Amount of Rewards vs. the Fee
You also need to take a look at how many rewards you could possibly get in a month in comparison to what the monthly fee is. When the fee is going to cost you more than you’ll ever get in rewards, then it doesn’t make sense to maintain that type of account. Furthermore, if you decide to sign up for the bank account, ask if you can switch to a different one if this program doesn’t work for you. After a few months of using the program, you may determine that the rewards are nominal and that you would rather have the cash in your account.

The Type of Rewards
Another way to determine if the rewards are worth it is to see exactly what they are. For example, if you earn petrol points or airline ticket points when you use your account but you rarely travel and don’t drive, then it does not make sense to sign up for the program. On the other hand, if you are earning more in rewards than you spend on the monthly fee, keeping this type of account open can prove smart in the long term.

No one answer exists as to whether or not a bank account with rewards and a monthly fee is worth it. The answer depends heavily on the type of account and whether or not it will work for your financial situation. Make a comparison to help you get to make the right decision.

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