The first thing you need to consider is how often you will want to have access to the cash.  The less often you need the cash the higher the interest you earn will be.  For example you can earn four percent or so on a CD which is a certified deposit.  The bank will require you to leave the money alone for three months at least, if not you won’t qualify for the interest you earned.

If you don’t need the money for a few years or say you have a small seed amount you want invest now to pay for a family vacation when your kid turns 16, or what is more likely you will have an investment goal for when that kid turns 18 – college.  So you start with a few thousand and invest it in a mutual fund rather than a savings account, this way the risk is hedged but still around ten percent, which is two to three times as much as what you would get in a regular savings account.

Then there are the rest of us who just want the best way to invest our cash but still have access to it.  Here is the plan, enroll in an online savings account from ING or any other internet bank and have your paychecks deposited into it, then just withdraw any of the money you need into your regular checking account, its super easy.  What this allows you to do is benefit from a four percent or higher interest rate on all your savings, and still withdraw what you need.  Internet banks are the best place to get a high interest savings account because they don’t have the same overhead costs as your local bank.  If you are looking for other investment options consider purchase structured settlement as a way to go.

The reason for this is that in order for a high interest checking account to really give you much benefit you need to maintain balances between $10,000 and $50,000.  If you don’t have that kind of liquid cash then there is absolutely no reason to have one.  Additionally if you do have that level of cash in a checking account you are at a greater risk of compromise.  If someone gets a hold of my checking account they would be lucky to get $2,000 because anymore than that is earning interest elsewhere.  If you have $10k plus and your identity is compromised you can kiss that money goodbye.  Finally the interest you are likely offered in any high interest checking account will be much lower than what you would find in the same bank with a savings account.

Chances are with more than ten thousand in the bank you should have pretty decent credit, this means you would qualify for some premium benefits with a rewards card from a major credit card company.  The rewards vary from airline miles to cash back to grocery credits.  In all reality you can find a rewards card that offers things you individually really want.  And that’s how it should be, if you search for the rewards you want first and not the gimmicks of the card company you’ll be happier than if you just arbitrarily choose a card.

The best way to manage these reward cards is to make a list of all the regular obligations you have, utilities, phones, etc, and then make another of all your loan payments.  Use the rewards card for all the monthly expenses not related to major debt obligations and keeps most of your cash in a savings account with higher interest.

There are a lot of options you have when it comes to high interest checking accounts but your best bet is a high interest savings account and a monthly rewards card.  But be sure to find a card with benefits you want.