Premier checking is a higher-tier account with more features and lower fees than a standard checking account

A premier checking account is a checking account designed for people who maintain higher balances or want more perks. Banks market these accounts under different names — Chase Premier Plus, Bank of America Preferred Rewards, Wells Fargo Preferred, Citibank Citi Priority — but they share the same basic structure: you keep a certain amount of money in the account (or across linked accounts), and in return the bank waives monthly fees, pays higher interest rates, and offers benefits like travel insurance or concierge services.

The catch is the balance requirement. Most premier accounts ask you to maintain between $10,000 and $25,000 in the account itself, or sometimes across multiple accounts at the same bank. If your balance drops below that threshold, you either pay a monthly fee (often $25 to $35) or lose the perks. Some banks let you meet the requirement through linked savings accounts or investment accounts, which gives you flexibility if you don't want to keep all your money in checking.

Premier accounts are not the same as premium accounts, which are even higher-tier products aimed at wealthy customers with six-figure balances. Premier sits in the middle: more expensive than a basic account, but less demanding than a private banking product.

Key Takeaways

  • Premier checking requires you to keep a minimum balance (usually $10,000 to $25,000) to avoid monthly fees and keep the account's benefits active.
  • Banks waive monthly maintenance fees for premier accounts and often pay higher interest rates on the checking balance itself.
  • Perks vary by bank but commonly include travel insurance, purchase protection, concierge services, and fee waivers on other products.
  • If your balance falls below the minimum, you will pay a monthly fee unless you bring it back up or close the account.
  • The real value depends on whether you already keep that much money in checking — if you do, the fee waiver and interest rate alone may pay for itself.

How the balance requirement works

The balance requirement is the core condition of a premier account. You must maintain a minimum amount of money in the account at all times. Some banks measure this as an average daily balance over a month, while others look at the lowest balance that month. A few use an end-of-day snapshot. The exact method matters because it determines whether a single large withdrawal can drop you below the threshold.

Most banks let you count balances in linked accounts toward the requirement. For example, if your premier checking requires $15,000 and you have $10,000 in checking plus $5,000 in a linked savings account, you meet the requirement. Some banks also count money in investment accounts, certificates of deposit, or even mortgage balances. Read your account agreement or call the bank to confirm what counts.

If you fall below the minimum, the bank will usually notify you and give you a grace period — often 30 days — to bring the balance back up. If you don't, the monthly fee kicks in. Some banks let you downgrade to a standard checking account instead of paying the fee, which is worth asking about if your balance drops temporarily.

Fees and interest rates on premier accounts

The main fee benefit is the waived monthly maintenance charge. A standard checking account might cost $12 to $15 per month if you don't meet that account's requirements (like direct deposit or a minimum balance). A premier account waives this fee entirely as long as you keep the balance up. Over a year, that saves you $144 to $180.

Premier accounts also pay interest on your checking balance, which standard accounts rarely do. The rate varies widely — from 0.01% to as high as 0.50% depending on the bank and the current interest rate environment. On a $15,000 balance at 0.25%, you would earn about $37.50 per year. That is not dramatic, but combined with the fee waiver, it adds up.

Some premier accounts charge fees for things that standard accounts do not, like overdraft protection or out-of-network ATM use. Read the fee schedule carefully. A few banks charge a fee to maintain the premier status itself if you don't meet the balance requirement, which is different from a standard monthly maintenance fee.

Common perks beyond fee waivers

Banks use perks to justify the balance requirement and attract customers who might otherwise shop around. Travel insurance is common — coverage for trip cancellation, lost luggage, or emergency medical care while traveling. Purchase protection covers items you buy with the debit card if they are damaged or stolen within a certain period. Cell phone protection reimburses you if your phone is damaged or stolen.

Concierge services are another draw. You get a phone number to call for help with restaurant reservations, travel planning, or event tickets. The quality varies; some banks offer genuine concierge service, while others offer a basic referral line. Ask what the concierge actually does before you count on it.

Other perks include fee waivers on other bank products (like a safe deposit box or wire transfers), higher rates on savings accounts or CDs, or priority customer service with shorter wait times. Some banks offer cash back bonuses when you open the account, though these are often one-time offers and should not be the main reason to choose an account.

When a premier account makes financial sense

A premier account is worth considering if you already keep $15,000 or more in checking for daily expenses or emergency reserves. If that money is sitting in a standard account earning nothing and costing you a monthly fee, moving it to a premier account with a fee waiver and interest rate is a straightforward win. The perks are a bonus.

A premier account is less useful if you keep most of your savings in a high-yield savings account or investment account and only maintain a small checking balance for bills. In that case, the balance requirement forces you to keep money in a lower-earning account just to avoid a fee. A basic checking account with no minimum balance might serve you better, even if it costs $12 per month.

The math also depends on your bank's interest rate and fee structure. If the bank pays 0.01% interest and charges a $35 monthly fee for falling below the minimum, you need a large balance to break even. If it pays 0.25% and charges a $15 fee, the threshold is lower. Use a calculator or ask the bank to show you the annual cost or benefit for your expected balance.

How to open a premier checking account

You open a premier account the same way you open a standard checking account — online, by phone, or in person at a branch. Most banks let you open one immediately if you have an existing account with them. If you are new to the bank, you may need to start with a standard account and request an upgrade, or you may be able to open the premier account directly if you can show proof of the required balance.

Bring a government-issued ID and proof of address (a utility bill or lease). Have your Social Security number ready. If you are linking the account to existing accounts at the bank, the process is usually automatic. If you are transferring money from another bank to meet the balance requirement, ask how long the transfer will take — it can be one to three business days for an ACH transfer, or same-day for a wire transfer (which may cost a fee).

Ask the bank to confirm in writing what counts toward the balance requirement and what happens if you fall below it. Get the fee schedule and a list of all perks. Some banks have different tiers of premier accounts with different minimums and benefits — make sure you are opening the right one for your needs.

Switching to a different account if your balance changes

If your balance drops and you no longer want to pay the monthly fee, you can downgrade to a standard checking account at the same bank. This usually takes one phone call or a visit to a branch. You keep the same account number and routing number, so your direct deposits and automatic payments do not change.

If you want to leave the bank entirely, you can open a checking account at another bank and transfer your balance. This takes longer — typically three to five business days for an ACH transfer — and you need to update your direct deposit and automatic payments. Some banks charge a fee to close an account early if you opened it recently, though this is less common with checking accounts than with savings products.

If your balance increases later and you want to upgrade back to premier, most banks let you do so without a new application. Call and ask them to convert your account. Some banks offer a promotional period where the balance requirement is waived, which is worth asking about if you are on the fence.

Frequently Asked Questions

Do I have to keep the minimum balance in the checking account itself, or can it be in savings?

Most banks let you count balances in linked savings accounts, money market accounts, or CDs toward the requirement. Some also count investment accounts or retirement accounts. Check your bank's specific rules — the requirement varies. Call the bank or read the account agreement to see what counts.

What happens if my balance drops below the minimum for one day?

Banks typically measure the balance over a full month, not a single day. Some use average daily balance, others use the lowest balance during the month, and a few use an end-of-day snapshot. One day below the minimum usually does not trigger a fee. Ask your bank which method they use so you know how close you can cut it.

Can I have a premier account if I am self-employed or have irregular income?

Yes. The bank cares about the balance in the account, not where the money comes from. If you can keep the required balance, you can have a premier account. Some self-employed people use a premier account as their business checking account, though you may want a separate business account depending on your tax situation.

Is the interest rate on a premier checking account better than a high-yield savings account?

No. High-yield savings accounts typically pay 4% to 5% interest, while premier checking accounts pay 0.01% to 0.50%. If you have money you do not need for daily expenses, a high-yield savings account is a better place for it. Use premier checking for money you need quick access to, and keep savings elsewhere.

Can I lose the premier status if I use my debit card too much?

No. Banks do not penalize you for using your debit card frequently. The only way to lose premier status is to fall below the minimum balance requirement or to close the account. Transaction limits do not apply to premier checking accounts.