Linking Checking Accounts

Do you have a free checking account? That’s a good thing, of course. Who likes to pay irritating and clearly gratuitous monthly fees when you don’t have to?


You want the bottom line to be about your profit margin – not your bank’s. The downside of a free checking account, however, is that you lose out on interest earned from your funds.

Conversely, in an interest-bearing checking account you actually make money on the money you deposit, but you have to maintain an average balance, and abide by other significant restrictions and requirements. The good news, however, is this: you can link your free checking account to an interest-bearing account and thus earn some interest.

You more than likely already have a checking account. Probably a free one. If you don’t have an interest-bearing checking account, now’s the time to do it. As a byproduct of the current economic uncertainty, many banks are now offering interest-bearing checking account rates that are beating the average money market rates. Ask your financial adviser for more information.

Once that’s done, all you need to do is link the two accounts. Your bank may or may not have a specific protocol for doing this, but in almost all cases the only thing you need to do is send a voided check from the bank where you have your checking account to the new bank where you’ve set up your interest-bearing checking account.

Once that’s completed, all you have to do is simply move money between the two accounts as you need. This is done either online, over the phone, or in person. Some restrictions apply when it comes to transferring money between accounts, however – you will oftentimes have a hold on access to funds until your checks clear, for example, or you may have a limited number of transactions per month. Be sure to read the fine print of whatever document you sign.

For more information, contact your personal financial adviser. He or she will be glad to answer all your questions. After all, when it comes to your money you can’t be too well-informed.