What Are Premium Bank Accounts?
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Premium bank accounts include checking and savings accounts.
A premium bank account might reward you for relationship banking — that is, having multiple financial accounts with the same bank.
Rewards include higher interest rates on deposit accounts, free or waived fees for ATM use and other services, and higher limits on transactions.
A basic bank account is the right solution for many people's checking and savings needs. But if you’re looking for more perks and have a high balance between your accounts, a premium checking or premium savings account might be the better choice.
Here’s a look at what premium bank accounts offer and what to consider before upgrading your checking or savings account.
What is a premium bank account?
Premium checking accounts and premium savings accounts are the main types of premium bank accounts. These accounts reward you for meeting high minimum balance requirements and/or for relationship banking — having multiple accounts with the same financial services provider, like checking or savings accounts, credit cards, loans or investments. Sometimes premium checking and savings accounts are packaged together.
What are the benefits and drawbacks of premium bank accounts?
Premium bank accounts offer some advantages that you might find valuable. Certain benefits are available for free or at a discount with a premium bank account, while they might cost a fee — or be inaccessible — with a basic checking or savings account.
Common perks of a premium bank account include:
Lower or waived fees: Premium bank accounts typically waive some or all fees for out-of-network ATM use, and some waive or discount fees on cashier’s checks, money orders, wire transfers, investment accounts and more. Some premium accounts also waive fees on foreign exchange rate adjustments on ATM withdrawals outside the U.S.
Higher limits: Many premium accounts offer higher limits on deposits and transfers. You might also have higher limits on daily purchases and ATM withdrawals.
Discounted loan rates: Personal loans, home loans and lines of credit could come at a better rate than you’d get with a basic account.
Free financial advice: Some premium accounts offer complimentary financial guidance or investing advice.
But all these benefits come at a price. Here are the key disadvantages of premium bank accounts:
High minimum balance requirements: You’ll have to keep a significant amount of money in your account or accounts to avoid monthly fees, which typically cost $25 or more. Banks often require at least $10,000 or $15,000 ($200,000-plus on the high end) to avoid fees. Usually, the minimum balance requirements refer to the total balance across your relationship accounts.
Tiered benefits: You might need to meet even higher minimum balance requirements to access some benefits.
Basic interest rates: The services and perks, not the interest rates, are the features that earn these accounts the “premium” categorization. You’ll often earn interest rates close to or the same as what you’d earn in a basic account.
» Looking for high-yield options? Check out our favorite high-yield accounts
What are the requirements for a premium bank account?
Here’s a quick look at the requirements and benefits of some top premium checking and savings accounts:
Account | Monthly fee | Minimum balance requirement to waive monthly fee | Key benefits |
|---|---|---|---|
Bank of America Advantage Relationship Banking with Preferred Rewards: Gold, Platinum, Platinum Honors and Diamond | $0 ($25 without Preferred Rewards). | $20,000 across linked accounts (minimum to qualify for Preferred Rewards). |
|
Chase Premier Plus Checking℠ | $25. | $15,000. |
|
Chase Premier Savings℠ | $25. | $15,000. |
|
Chase Sapphire℠ Checking | $25. | $75,000. |
|
Chase Private Client Checking℠ | $35. | $150,000. |
|
Citibank Citi Priority | None, but account will be downgraded if balance doesn't meet minimum requirement. | $50,000. |
|
Citibank Citigold | None, but account will be downgraded if balance doesn’t meet minimum requirement. | $200,000. |
|
Citibank Citigold Private Client | None, but account will be downgraded if balance doesn’t meet minimum requirement. | $1 million. |
|
HSBC Premier | $50. | $100,000. |
|
Wells Fargo Prime | $30. | $25,000. |
|
Wells Fargo Premier | $35. | $250,000. |
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Should I use a premium bank account?
A premium bank account could be the right choice if you’re able to meet the high minimum balance requirements and can take advantage of the perks of having multiple accounts with the same bank. So if you tend to use out-of-network ATMs or personal and official checks, and you want access to free or discounted investing or financial guidance, a premium bank account could fit the bill.
» Prefer a rewards account with lower balance requirements? Consider a rewards checking account
