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Bank With Your Insurance Company

May 13, 2014
Banking, Banking News
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Whether it’s life insurance, auto insurance or any other kind of protection, you look to your insurance company for peace of mind. The products your insurance company offers are their promise that they’ll be there when you need them. Your insurance company’s promise is the same one that you want from your bank. And when you are shopping for a bank account, you might be surprised to discover that some insurance companies offer banking products.

Interest-paying accounts

Nationwide and Mutual of Omaha are two well-established insurance companies that also offer banking options, including interest-paying checking accounts. You don’t have to buy an insurance policy to open an account, but the banking side might try to sell you insurance. The upside for insurance companies is they gain another customer base, and if you don’t mind the occasional offer or sales pitch, you can find deals at these banks.

Check out the terms 

It can be difficult to find a checking account that doesn’t blindside you with fees that eat into your balance, so one that pays interest and increases your balance is a treat. You always want to be sure to review all the terms though, since interest-paying checking accounts can require higher account minimums if you want to avoid paying fees.

Some options

Nationwide Bank. The bank’s E-Checking account offers a few different interest rates based on your account balance. Accounts with less than $2,500 earn 0.10%, which is nothing to write home about, but it’s still much better than the 0% you’ll get with most checking accounts. Accounts with a balance of $2,500 or more earn 0.30% annual interest, which is lower than some of the best high-interest savings accounts out there, but if you need easier access to your money and all the features of a checking account, this is a great option. There is an $8 monthly fee for the account, but that’s waived if you set up direct deposit and use your debit card eight times a month.

Mutual of Omaha Bank. The company offers a full suite of banking products — from checking and money market accounts to credit cards and home loans. The Online Advantage Checking account makes it even easier to earn interest on your account balance by paying 0.50% APY on your balance as long as it stays above $1,500. And the $10 monthly account fee is waived as long as you keep at least $100 in the account. If you have $5,000 or more, Mutual of Omaha’s Online Money Market account pays 0.85% APY, which is comparable to some of the highest-interest savings accounts and even many CDs.

Why should I change?

If you like the idea of doing more of your financial business in fewer places, reducing the number of websites to visit and numbers to call, banking with your insurance company might be a good option. And even if those concerns aren’t high on your list, some banking products offered by insurance companies are attractive on their own. Insurance companies are well-established with huge balance sheets, so they have leverage to offer up some great rates and solid products.

Searching for the best banking options image via Shutterstock.