6 Ways to Keep Rewards Checking Rewarding

Interest rates are falling. Free checking accounts are disappearing. Debit card rewards programs are closing. But there is still a way to make your personal finances pay off: a high-yield checking account.

With the rates of standard interest-bearing checking accounts averaging near a measly 0.5 percent, these programs continue to be a bright spot with annual percentage yields of around 4 percent, according to Bankrate's new survey. While the low-rate environment is impacting the world of high-yield checking, here are six ways you can continue to reap the benefits of what is also called rewards checking.

Even if you find the most attractive interest rate, the search is not over.

Bankrate's 2011 High-Yield Checking Survey shows a wide range of requirements for these accounts. Most accounts require debit card activity, but the number of monthly debit card purchases varies widely. Outside of debit card usage, you can explore these accounts to find qualifications that best fit your financial lifestyle. Each account requires different terms and can include online bill pay, direct deposit and e-statements.

"Finding a rewarding interest rate is great, but it doesn't replace the need to comparison shop to make sure that's really your best choice," says Greg McBride, CFA, Bankrate’s senior financial analyst.

McBride says consumers should compare monthly account requirements to determine if the hurdles they need to clear are attainable on a consistent basis.

You may not want to look far from home when you start the search for a reward checking account.

When ViewPoint Bank of Texas first began offering its rewards checking program in 2008, the bank did not restrict the program with residency requirements. Wendi Costlow, chief marketing officer of ViewPoint Bank, says news of its interest rate spread across the Internet and many out-of-state yield chasers began to open accounts. The bank now solely offers the high-yield account to Texas customers.

Other banks appear to be following the trend of rewarding local customers only. As local customers are rewarded with above-average rates, banks and credit unions hope to be rewarded with more of their business.

McBride says confining high-yield rates to local customers can work to a bank's advantage when the institution hopes to sell additional services such as loans, CDs and other banking products.

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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.