5 Ways to Beat Higher Bank Fees

Think outside the savings box.

While money market and savings accounts are safe places to stash your money, current interest rates on high-yield savings products average below 1 percent. That's not exactly the high yield consumers are hoping to find. Bankrate's 2010 High-Yield Checking Study includes a number of checking accounts with interest rates that will beat those measly figures.

According to the study, some high-yield checking accounts top 4 percent. This gives consumers a chance to more than quadruple the income earned from a traditional high-yield savings account.

These programs do typically carry additional requirements, such as direct deposit and a minimum number of monthly debit card transactions. If you can satisfy these conditions, Greg McBride, CFA, senior financial analyst for Bankrate.com, recommends taking advantage of the opportunity to accrue more interest.

"The consumer that's going to most effectively use the rewards checking is going to be someone who can stay as close to the balance cap as possible," McBride says.

The balance cap for the majority of these programs is $25,000 or more. To understand the difference in potential earnings, use Bankrate's savings income calculator.

Free checking has become a part of the past at some of the nation's biggest banks, but Bankrate's 2011 Credit Union Checking Study shows that consumers can still get their checking at no cost at many credit unions around the country.

"One of the reasons that free checking is disappearing is because many institutions were making a lot of money on ATM and debit cards, overdraft protection, and they need to make up the lost profits," says Tom Berquist, senior vice president of member strategies at BECU, a credit union based in Washington. "Since we never allowed these types of overdrafts, we're not looking to replace it."

Consumers will find more than free checking at credit unions.

"Credit unions have taken great strides to alleviate the challenges of a more limited product line, and limited branch and ATM networks," McBride says.

Todd Pietzsch, BECU spokesman, says that his credit union participates in a shared branch and ATM network with other credit unions, which give members access to more than 28,000 surcharge-free ATMs nationwide and more than 3,900 other credit union locations.

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Bankrate.com is the Web's leading aggregator of information on financial products including mortgages, credit cards, new and used automobile loans, money market accounts, certificates of deposit, checking and ATM fees, home equity loans and online banking fees. Visit Bankrate.com to get the tools and information that can help you make the best financial decisions.