Most checking accounts pay little to no interest, making it hard to grow your balance. High-yield options, however, let you earn significantly more without giving up the flexibility of a checking account.
Some of the best accounts offer rates that rival top savings accounts, allowing your money to work harder while remaining accessible for everyday spending.
10 Best High-Yield Checking Accounts
The right account can help you earn more on your balance while keeping your money accessible for everyday spending. These top high-yield checking accounts stand out for their strong interest rates, minimal fees, and flexible requirements.
1. Upgrade Rewards Checking Plus
Upgrade offers the Rewards Checking Plus account as a standout option in its digital banking suite. This account provides a unique blend of efficiency and savings with a competitive edge: customers can earn up to 2% cash back on everyday debit card purchases.
2. SoFi Checking and Savings
The SoFi Checking and Savings account offers a high APY of up to 3.80% on savings and 0.50% APY on checking. It also offers a $300 sign-up bonus when you set up direct deposit of $5,000 or more, or a $50 bonus with direct deposit of $1,000 to $4,999.
3. Consumers Credit Union: Rewards Checking
Consumers Credit Union offers a great opportunity for those looking for a high-yield checking account. With an APY of up to 5.00% on balances up to $10,000, you can earn 80 times the national average rate.
4. First Tech Rewards Checking
First Tech Rewards Checking® offers a rewarding banking experience free from common restrictions, featuring high-yield interest and various financial incentives in one account.
5. Liberty Federal Credit Union: Vertical Checking
Liberty Federal Credit Union Vertical Checking offers a compelling choice for those seeking high yields from a checking account.
6. T-Mobile MONEY
T-Mobile MONEY is a great option for those looking for a checking account with a high APY. All customers earn 2.50% APY on all checking and savings balances, with no account fees.
7. Ally Bank: Interest Checking
Ally Bank offers an interest checking account with a competitive APY of 0.25%. With this account, you get access to your paycheck up to two days earlier with early direct deposit, and allows you to deposit checks remotely.
8. NBKC: Everything Account
The NBKC Everything Account offers a competitive APY of 1.50%, along with a range of convenient banking options.
9. Alliant Credit Union: High-Rate Checking
The Alliant Credit Union High-Rate Checking account offers a competitive APY of 0.25% and comes with a range of benefits to make banking easy and convenient.
10. Lake Michigan Credit Union: Max Checking
Lake Michigan Credit Union offers a competitive APY of 3.00% on its Max Checking account. The maximum balance earning the top APY is 3.00% up to $15,000, with no interest paid on balance amounts above that.
What is a high-yield checking account?
A high-yield checking account is a type of checking account that offers a higher interest rate than a traditional checking account. These interest bearing checking accounts typically offer annual percentage yields that range from 0.25% to 3% APY or more. In comparison, traditional checking accounts often have an APY of 0.01% or less.
Benefits of High-Yield Checking Accounts
One of the main benefits of high-yield checking accounts is the ability to earn interest on your money. This can add up to significant savings over time, especially for those with larger balances.
Additionally, many high interest checking accounts come with various perks such as free online bill pay, ATM fee reimbursements, and even cashback rewards. It’s important to note that the interest rate is not the only factor to consider when choosing a high interest checking account.
How to Choose a High-Yield Checking Account
A high-yield checking account can help grow your savings, but it’s important to find one that fits your financial habits. Here’s what to look for:
- Interest rate: Compare APYs carefully, since they reflect actual earnings after compounding. Watch out for promotional rates that may drop after a few months.
- Fees and requirements: Some accounts charge monthly fees or require a minimum balance to earn interest. Look for accounts with little to no fees to maximize your returns.
- Reputation and stability: Choose a bank or credit union with strong customer reviews and a solid financial track record.
- Insurance coverage: Make sure the institution is FDIC-insured (banks) or NCUA-insured (credit unions) to protect your deposits.
- Account features: Look for mobile banking, free bill pay, ATM access, and other features that matter to you.
- Accessibility: Consider ATM availability, customer support, and ease of account access online or via mobile.
- Bonuses and perks: Some accounts offer sign-up bonuses or rewards, which can be a nice extra—just don’t let them outweigh the account’s long-term value.
- Overdraft policies: Learn how the bank handles overdrafts. Some offer fee-free protection, while others charge per incident.
- Bundled benefits: Some institutions give better rates or perks when you use multiple products, like savings accounts or credit cards. This could be worth exploring if you want everything under one roof.
Alternatives to High-Yield Checking Accounts
While a high-yield checking account is an attractive option for many, it may not be suitable for everyone’s financial needs or preferences. Here are some common alternatives:
- High-yield savings accounts: Similar to high-yield checking, these savings accounts offer higher-than-average APYs. They may come with some restrictions regarding the number of withdrawals you can make each month.
- Money market accounts (MMAs): A money market account often blends the features of a checking and savings account. They can offer competitive rates and come with check-writing and debit card privileges, though they might have transaction limits.
- Certificates of deposit (CDs): CDs are time-deposit accounts where you agree to leave a sum of money untouched for a specified period (like 6 months, 1 year, or more) in exchange for a fixed interest rate. They typically offer higher rates than a standard savings account but impose penalties for early withdrawal.
Conclusion
High-yield checking accounts offer a great way to earn more interest on your money, with many of them coming with added perks. Be sure to compare interest rates, fees, and the reputation of the bank or credit union when choosing a high-yield checking account. By making an informed decision, you can ensure that your hard-earned money is working for you.
Frequently Asked Questions
How does a high-yield checking account work?
A high-yield checking account operates similarly to a traditional checking account. To earn the highest rates, you may have to meet certain criteria.
These criteria may include balance thresholds, mandatory monthly direct deposits, or a specified number of debit card transactions per month. However, not all high interest checking accounts have such requirements.
How does a high-yield checking account differ from a high-yield savings account?
While both types of accounts earn interest, high-yield checking accounts typically offer more flexibility with unlimited transactions, whereas savings accounts might limit the number of withdrawals or transfers you can make each month. However, savings accounts typically offer a higher annual percentage yield (APY).
Do high-yield checking accounts have fees?
Some do. It’s essential to review the terms and conditions of the account to understand any monthly maintenance fees, minimum balance requirements, or other associated charges.
Are high-yield checking accounts worth it?
The opportunity to earn extra interest can certainly be appealing, but you also need to consider any account fees or requirements that could offset it. Many online banks that offer high interest accounts have minimal or no fees, making them well worth considering.
Overall, it’s essential to thoroughly evaluate your individual financial needs and goals before making a decision on whether a high-yield checking account is the right choice for you.
Can the interest rate on my high-yield checking account change?
Yes. Interest rates on these accounts can be variable and may change based on market conditions or the bank’s discretion. Always read the terms and conditions to understand the rate’s stability.
Are there any transaction requirements to earn the high interest?
Some banks require a certain number of debit card transactions each month or direct deposit setups to qualify for the higher interest rate. Always check the account details to ensure you can meet these requirements.
Are interest-bearing checking accounts FDIC insured?
Yes, interest-bearing checking accounts at banks and credit unions are typically FDIC-insured (Federal Deposit Insurance Corporation) or NCUA-insured (National Credit Union Administration) just like traditional checking accounts. This means that your deposits are insured up to $250,000 per depositor, per institution.
