Taking competitors head-on and hoping to attract new customers, Fidelity Investments has upgraded its checking program, mySmart Cash, to pay a 3.5% interest rate and waive fees on a myriad of services, including the checks themselves, annual fees, bounced checks and online bill-paying, the Boston Globe reports. By comparison, the average checking account is currently paying 2.13%, although many banks are paying as little as five to 10 basis points.

In addition, there are no annual fees. While Fidelity doesn’t run automated teller machines, it will refund almost all of the fees people are charged at 1 million ATMs run by a number of leading banks carrying the Visa, Plus or Star logos, including Bank of America, Citizens Bank and TD Banknorth.

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