Best High Yield Checking Accounts
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High-yield checking accounts offer rates high enough to rival savings and money market accounts. Discover the top 5 high-yield checking accounts here.
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Rewards Checking - Up to 3.30% APY
- Use the promo code RC100 when you apply for a Rewards Checking account by 06/30/23. Then have qualifying direct deposit(s) to earn up a $100 welcome bonus!
- Up to 3.30% APY
- Zero monthly maintenance fees
- Zero overdraft or NSF fees
- Zero minimum monthly balance reqs
- Unlimited domestic ATM fee reimbursements
- Online debit card management
- Simple, 3-step process for direct deposit
- Only $50 to open an account
Free Rewards Checking
- Earn up to 5.00% APY*
- Unlimited reimbursement for any and all ATM fees**
- Over 30,000 ATMs & over 5,000 shared branches
- No monthly maintenance fees
- No minimum balance
Advantage Checking - Up to 0.90% APY
- Up to 0.90% APY
- $50 minimum opening deposit
- No monthly service fee
- No minimum balance requirement
- 80,000+ fee-free ATMs
When it comes to high-interest banking, most people don't think of checking accounts.
However, some high-yield checking accounts outshine even the best high-yield savings accounts on the market.
Below, review the best rates available, terms and conditions, and qualification requirements so that you can make an informed decision before opening your next account.
What is the National Average APY?
APY, or "Annual Percentage Yield", are interest payments that the bank adds to your account balance. What you earn in APY is determined by three factors:[1]
- Your account balance
- The specific APY offered by the bank
- The compounding frequency (daily, monthly, quarterly, annually)
For example, if you have $10,000 in your account and earn 0.10% APY compounded daily, you will earn $0.83 in interest each month.
In the U.S., the average APY for savings accounts is 0.07%, at the time of writing.
Given these low rates, it's not surprising that many people seek ways to help their money grow faster using high-yield accounts.
The Top 5 High-Yield Checking Accounts
The below recommendations offer some of the most impressive APYs we've seen in a checking account. Be sure to review all requirements before applying.
Liberty FCU Vertical Checking
Liberty Federal Credit Union Vertical Checking offers one of the top rates currently in the nation.
There are hundreds of employers in their field of membership, so it's worth checking out. Or you can also join by just donating $5 to Mater Dei Friends & Alumni Association.
The required opening deposit is just $25. To get the top APY (currently 3.45%), the requirements are surprisingly easy, which are detailed below.
Rates & Features
- Rate: 3.45% on balances up to $20,000
- Maximum monthly interest payment: $57.75
- Requirements:
- 15 debit purchases per month
- 1 monthly direct deposit
- Log on to online or mobile banking once during the month
- Enroll in e-statements
- 15 debit purchases per month
Axos Bank Rewards Checking
Axos Bank Rewards Checking offers lower rates than the rest of this list. However, it does have other impressive perks that should be attractive to savers.
These include no overdraft or insufficient fund fees, unlimited ATM reimbursements, and the highest maximum balance of any bank on the list.
Rewards Checking - Up to 3.30% APY
- Use the promo code RC100 when you apply for a Rewards Checking account by 06/30/23. Then have qualifying direct deposit(s) to earn up a $100 welcome bonus!
- Up to 3.30% APY
- Zero monthly maintenance fees
- Zero overdraft or NSF fees
- Zero minimum monthly balance reqs
- Unlimited domestic ATM fee reimbursements
- Online debit card management
- Simple, 3-step process for direct deposit
- Only $50 to open an account
Yes. High-yield checking accounts carry no additional risk compared to traditional checking accounts. Each account on this list insures your deposits by the FDIC (for banks) or NCUA (for credit unions) up to $250,000.[2][3]
Devon Bank Kasasa Cash Checking
Chicago-based Devon Bank offers their Kasasa Cash Checking with a APY of 1.50% on balances up to $10,000.
However, members can open a linked Kasasa savings account that earns an additional 0.85% APY on balances up to $50,000 in addition to their checking account interest payments.
Devon Bank also requires zero minimum deposits and has no monthly maintenance fees.
Rates & Features
- Rate: 1.50% on balances up to $10,000 (0.25% on balances over $10,000)
- Maximum monthly interest payment: $12.50
- Requirements:
- 10 debit purchases of $3.00 or more
- 1 direct deposit or ACH payment
- 10 debit purchases of $3.00 or more
La Capitol FCU Choice Checking
Based in Baton Rouge, Louisiana, La Capitol offers the highest maximum APY on the market with their Choice Checking account.
But there's a catch: a tiered APY system, the lowest of which is only slightly above the national average. To check if you're eligible to join La Capitol FCU, review their field of membership.
Rates & Features
- Rate: 4.25% on balances up to $10,000; 0.10% on balances over $10,000
- Maximum monthly interest payment: $35.42
- Requirements:
- Enroll in e-statements
- 15 debit purchases per month or maintain $1,000 average daily balance
- Enroll in e-statements
Consumers Credit Union Serious Interest Checking
CCU potentially offers the best mix between APY and maximum balance with their Rewards Checking.
Free Rewards Checking
- Earn up to 5.00% APY*
- Unlimited reimbursement for any and all ATM fees**
- Over 30,000 ATMs & over 5,000 shared branches
- No monthly maintenance fees
- No minimum balance
How to Decide if a High-Yield Checking Account is Right for You
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When deciding on the best account for your unique financial situation, you'll want to take into account a number of factors. These include:
- Do you meet the monthly requirements? Most high-yield checking accounts have requirements to receive the maximum APY. They may require you make a certain number of debit card purchases and/or have a certain amount in direct deposits per month. Make sure it's reasonable for you to meet these requirements.
If you don't want to have to jump through hoops to get your high APY, it's probably better if you use a free checking account instead. You can put any excess cash into a high-yield savings account to grow your money.
- How much do you have saved? While earning a high yield is great, most offer much lower rates once you have a big balance. Granted, most people don't need a lot of money in their checking account — and additional savings can be placed in a high-yield savings account or a long-term investment vehicle like bonds.
- Can you link a high-yield savings account? Once your maximum balance is exceeded, can you transfer funds into a linked high-yield savings account that will still earn considerable interest, such as with Devon Bank?
- Do you need physical branch locations? Most of these options only have regional locations. Each offers mobile banking, mobile check deposits, and ATM reimbursement, so most banking basics can be achieved. However, if you aren't local and make frequent cash deposits, these accounts may not be for you.
- Are you a disciplined spender? One risk with checking accounts versus savings accounts, CDs, or bonds is the temptation to overspend without the need to transfer funds or have a waiting period before using money with your debit card.
The Bottom Line
High-yield checking accounts are a little-known investment option in the financial world where everyday people can potentially grow their savings faster than inflation in a low-risk environment.
Make note that APY rates are variable and can change quickly, so be sure to double-check the current rate before opening an account and read the fine print.
References
- ^ Consumer Financial Protection Bureau. Appendix A to Part 1030 — Annual Percentage Yield Calculation, Retrieved 4/27/2022
- ^ FDIC. Your Insured Deposits, Retrieved 4/27/2022
- ^ NCUA. How Your Accounts are Federally Insured, Retrieved 4/27/2022
Write to Justin Barnard at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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