High-yield checking accounts are gaining popularity due to their unique combination of high-yield savings and flexible spending options. Some of the best high-yield checking accounts on this list are better than some savings accounts, but there are some constraints. Best High-Yield Checking Accounts
These high-yield checking accounts can be very appealing if you don’t mind simply having an internet or app-based bank and what features are important to you.
We looked at banks, credit unions, and innovative app-based start-ups to find the best checking accounts with rewards for you. But keep in mind that a lot of these accounts have limits. Most of these accounts really “limit” the highest annual percentage yield (APY) to low balance levels. They might also have rules, such how many transactions or direct payments you need to make each month. We break it down below, so be sure to read the fine print.
1. Consumers Credit Union Rewards Checking
Consumers Credit Union is our top pick because of their awesome Rewards Checking Account that offers an amazing interest rate on your checking account. It also puts them on our list of the best credit unions! Best High-Yield Checking Accounts
Right now, you can earn up to 5.00% APY on your checking account for the first $10,000. The account also has no fees, no minimum balances, and reimburses your ATM fees.
However, you do have to meet some criteria:
Earn 3.00% APY
- Receive eDocuments.
- Complete at least 12 debit card purchases totaling $100 or more each month. Debit card transactions can be made with or without using your personal identification number (PIN).
- Direct deposits or ACH credits totaling $500 or more must post to your account monthly.
Earn 4.00% APY
Meet the 3.00% requirements plus:
- Spend $500 or more on CCU Visa credit card purchases each month; there is no minimum number of transactions.
Earn 5.00% APY
Meet the 4.00% requirements plus:
- Spend $1,000 or more on CCU Visa credit card purchases each month; there is no minimum number of transactions.
- There’s no minimum balance to open a free checking account. CCU has over 30,000 ATMs and you’ll receive unlimited reimbursements for any ATM fees. There’s also no limit on the number of checks you can write.
If you don’t meet the above requirements for a tier, your checking will still be free, but your APY will drop to 0.01%. You also don’t receive ATM refunds. Best High-Yield Checking Accounts
2. GO2bank™
GO2bank™ is a mobile bank that is working to take mobile banking to the next level. What we love about GO2bank™ is that they are really helping people access banking who may have never had a bank account before. GO2bank™ was created by Green Dot Corp, which many people may already be familiar with.
This account has a $5 monthly fee, but it’s easily waived if you receive an eligible direct deposit payment during the previous monthly statement period. Best High-Yield Checking Accounts
Plus, the perks are amazing. You can currently earn 4.50% APY (Annual Percentage Yield) on up to $5,000 in your savings account, paid quarterly.¹ You can also earn up to 7% cash back when you purchase eGift Cards from the nearly 100 popular merchants in the GO2bank mobile app, as well as 3% cash back on Amazon eGift Cards bought in the app.².
Plus, they offer up to $200 in overdraft protection with opt-in and eligible direct deposit ³.
Read our full GO2bank™ review here. Best High-Yield Checking Accounts
Why I Like It: A savings account that earns interest combined with a deposit account that has amazing overdraft protection.
3. Current
Current is a leading mobile banking app that has been endorsed by a huge range of personalities, including YouTuber Mr. Beast. It makes banking convenient and easy—it’s that simple. Best High-Yield Checking Accounts
Current offers a free checking account that you should consider. It has no minimum balance requirements, no overdraft fees, fee-free ATM withdrawals at over 40,000 ATMs, and up to 15x points for cash back!
Plus, you can get up to 4.00% APY on balances up to $6,000 by adding money to your Savings Pods and enabling the Interest feature.
Check out our Current Review here.
Why I Like It: Free mobile banking.
4. Wealthfront
Wealthfront (the popular robo-advisor) recently launched a high-interest checking account, the Wealthfront Cash Account. This account is a great way to earn interest on all of your money and get your paycheck up to two days early.
What’s great about the account is that it provides no account fee banking for all of your spending needs and also earns interest. It currently pays 3.30% APY and you can get started with just $1.
They are very mobile-friendly, with 19,000 fee-free ATMs, mobile check deposits, and BillPay.
5. Axos Rewards Checking
Axos Bank calls themselves America’s most experienced digital bank. And their Rewards checking account hits every feature you’d expect from a top-notch online bank that currently earns 3.30% APY! Best High-Yield Checking Accounts
Rewards Checking has no minimum balance requirements, no monthly fees, and no overdraft or insufficient fund fees. Plus, they offer unlimited domestic ATM reimbursements!
Axos Bank does require that you have good banking history to get approved.
To get the full rate, you must complete the following:
- 0.40% APY – Receive monthly direct deposits totaling $1,500 or more. This requirement must now be met to be eligible to earn any interest during the statement cycle, regardless of whether the other interest-earning requirements are met.
- 0.30% APY – Use your Axos Visa® Debit Card for a total of 10 transactions per month (with min of $3 per transaction) OR sign up for Account Aggregation/Personal Finance Manager (PFM) in Online Banking.
- 1.00% APY – Maintain an average daily balance of $2,500 per month in an Axos Managed Portfolios Invest Account.
- 1.00% APY – Maintain an average daily balance of $2,500 per month in an Axos Self Directed Trading Invest Account.
- 0.60% APY – Use your Rewards Checking account to make your full monthly Axos consumer loan payment.
That adds up to 3.30% APY. Qualifying transactions must post and clear the account during the monthly qualification cycle to get the APY. There’s also a limit of $50,000 on which you can earn interest. Best High-Yield Checking Accounts
6. First Tech Federal Credit Union
First Tech Rewards Checking® is a solid option for checking. The account has no minimum balance requirements, no monthly maintenance fees, and a network of 30,000 CO-OP fee-free ATMs.
You can earn 4.00% APY on all First Tech Rewards Savings balances with a minimum monthly card spend of $1,000 or a minimum monthly direct deposit of $1,000 or more.
You can also receive an ATM rebate of up to $10/mo and cash back on credit card spending or loan payments! Best High-Yield Checking Accounts
7. Chime
Chime was one of the original free mobile banking apps that revolutionized mobile banking. They started with a mobile-first mindset and also wanted to keep fees as low as possible.
As such, they have a top-notch free checking account if you’re okay with a mobile only platform. Chime has no physical locations, and all of their banking is done online – in the app.
In addition to keeping the fees out of banking, Chime allows you to set up an automatic savings program. They launched a high yield savings account that currently pays 0.75% APY⁴. You can also enroll in round-ups to automatically save into this account.
The app bundles them all into a single high-yield checking account.Best High-Yield Checking Accounts
How High-Yield Checking Works
High-yield checking is an intriguing hybrid of checking, savings, and bank marketing. Yes, marketing. Each bank tailors their account slightly differently, but these accounts naturally aim to attract interest and attention. And as a result, many banks “write off” the “extra” interest as a marketing expense. That’s why the balance allowed is usually pretty low.
For example, 1.00% interest on $10,000 is only $100 – so a bank may view an extra promotional rate of 1.00% APY as a marketing cost of $100 per customer. Not bad?
Furthermore, many banks combine high-yield checking with requirements, such as minimum balances, debit card transactions, and direct debit. These transactions typically bring revenue to banks (especially debit card transactions), so by requiring them, the banks are basically making money to pay you a higher rate.
If you’re okay with these extra stipulations on your bank account, high-yield checking can be a great way to earn more interest on your money. Best High-Yield Checking Accounts
High-Yield Checking vs. Savings Accounts
At this point, you may be asking yourself, why should I even consider a savings account? Why not just use one of these high-yield checking accounts instead?
Well, if you noticed in the list above, there are many rules and restrictions. Depending on the person, it may simply not be worth the time or effort to try and meet the requirements to get the higher yield.
Plus, savings accounts typically have no requirements (other than sometimes a minimum balance requirement) and no upper limit. If you have a large cash balance (say $150,000) and you want to earn interest, you need to park that money in a savings account.
The best high yield savings accounts today pay solid interest rates on the full balance, with no requirements. Best High-Yield Checking Accounts
Why Should You Trust Us?
The College Investor has been testing and reviewing checking accounts for over 10 years. I have been actively writing about banking products and the need for free checking since 2009.
In creating this guide, we’ve looked at our extensive list of bank reviews, our knowledge of the banking industry, and compared at least 50 of the top banks in the United States to see which free checking accounts are the best for consumers.
Furthermore, our compliance team checks the accuracy of any rates on this list every weekday to ensure that you’re getting the most accurate information we can create. Best High-Yield Checking Accounts
Final Thoughts
We hope you now have a clearer understanding of the concept of high-yield checking. With that in mind, you know your options and you can know if it’s right for you.
You might find other articles in our checking account comparisons helpful:
Methodology
The College Investor is dedicated to helping you make informed decisions around complex financial topics like finding the best checking account. We do this by providing unbiased reviews of the top banks and checking accounts for our readers, and then we aggregate those choices into this list. Best High-Yield Checking Accounts
We have picked checking accounts based on our opinions of how easy they are to use, their costs and fees, any interest rates and bonuses provided, and various other factors. We believe that our list accurately reflects the best free student checking accounts in the marketplace for consumers. Best High-Yield Checking Accounts