Best High-Yield Checking Accounts for November 2024
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High-yield checking accounts are interest-bearing accounts that might pay as much as 5.00% annual percentage yield (APY).
To receive the highest interest rates, you must meet the bank or credit union’s requirements. Otherwise, you’ll only earn the fallback APY.
Alternatives to high-yield checking accounts include high-yield savings accounts, regular checking accounts, money market accounts and certificates of deposit.
A high-yield checking account may be worthwhile if you meet the qualifying criteria and already have an emergency fund in a different account type.
Compare our top picks for the best high-yield checking accounts
What is a high-yield checking account?
A high-yield checking account is a type of savings account that pays interest on funds deposited that meet the bank’s or credit union’s minimum qualifying monthly requirements. Online banks and credit unions typically offer these accounts.
Typically, traditional checking accounts don’t pay interest, but high-yield checking accounts do. Other features of high-yield checking accounts include:
Low or no monthly maintenance fees
Specific qualifying requirements in terms of minimum or regular deposits or opening other types of accounts
Free checking
How does a high-yield checking account work?
A high-yield checking account works like a standard checking as you can write checks and make debit card purchases. The main difference is high-yield checkings pay interest. However, to earn the highest offered APY, you’ll usually need to meet the qualifying criteria, which can vary from institution to institution.
Some institutions require that a minimum number of qualifying point-of-sale debit card transactions meet minimum monthly deposit requirements. Others add additional requirements to earn the highest rates, including opening one or more other account types with minimum average balances.
The interest earned will be credited to your account if you meet all the qualifying requirements in a particular month. If you don’t, you’ll earn the fallback APY, which is often significantly lower than the highest advertised rate.
Pros and cons of high-yield checking accounts
Pros
Higher earnings potential than traditional checking
Low or no account fees
Can write checks or make debit card purchases
Cons
Must meet qualifying criteria to earn the highest rates
While typically offering free checking, other fees may apply
Might have minimum monthly transaction or deposit requirements
Pros of high-yield checking accounts explained
Higher earnings potential than traditional checking: High-yield checking accounts pay rates of up to 5.00%, while standard checking accounts do not pay interest. A high APY helps you grow your money with your checking account and provides an additional way to build wealth.
Low or no fees and minimum deposits: Most high-yield checking accounts offer free checking with no monthly maintenance fees and no or low minimum opening deposit requirement.
Can write checks or make debit card purchases: High-yield checking accounts are liquid and allow you to make unrestricted purchases and write checks to access your funds whenever you want.
Cons of high-yield checking accounts explained
Must meet qualifying criteria to earn the highest rates: Many high-yield checking accounts have multiple criteria you must meet to earn the highest rates. Some of these requirements can be onerous, such as opening multiple account types, maintaining high minimum balances and making numerous credit card transactions.
While they typically offer free checking, other fees may apply: Most high-yield checking accounts advertise free checking with zero monthly maintenance fees. However, there might be other fees for copies, overdrafts, returned deposits or checks. Review the fine print to understand any fees you might be assessed.
Might have minimum monthly transaction or deposit requirements: Many high-yield checking accounts set a minimum number of point-of-sale purchases you must make with your debit card and require a minimum amount of monthly direct or check deposits to earn interest.
Why choose a high-yield checking account?
A high-yield checking account is a great option if you’re looking for flexibility with your funds whilst earning interest. With check-writing features and debit card transactions, high-yield checking accounts offer more accessibility than other types of savings accounts.
Additionally, high-yield checking accounts typically have low to no fees, meaning opening an account won’t eat into your earnings. Overall, a high-yield checking account is a smart way to grow your savings without sacrificing access to your funds.
How to choose a high-yield checking account
Minimums
Check whether the account requires a minimum opening deposit and minimum monthly deposits or if you must complete a certain number of point-of-sale transactions with your debit card each month to earn interest.
Fees
Some standard fees include:
Monthly service fees: Fees charged to maintain your account
ATM fees: Fees incurred when using your debit card at a non-partnered ATM
Overdraft fees: Fees charged if you overdraft your checking account
Foreign transaction fees: Fees charged when you make debit card purchases in other countries or complete foreign wire transfers
APY
Most high-yield checking accounts offer an advertised APY if you meet all of its qualifying criteria. If you don’t qualify, they usually have fallback APYs for meeting fewer requirements. If the criteria to earn the highest advertised APY is too demanding, choose a high-yield checking account with a different institution that offers a lower rate but has fewer qualifying criteria.
Customer service
A good high-yield checking account should provide several ways to contact customer service. You’ll want to know how you can contact them and their availability.
Security
Ensure the bank or credit union you open an account with is an FDIC or NCUA member. Your funds at FDIC/NCUA member banks or credit unions are insured up to $250,000, which protects you even if the institution goes bankrupt or closes.
Where to get high-yield checking accounts
• National banks: Wells Fargo, US Bank, Bank of America, Chase Bank and CitiBank offer some interest-bearing checking accounts, but their rates may be lower than those offered by online banks or credit unions.
• Local banks: Some local or regional banks offer interest-bearing checking accounts. While they might pay interest, they may also have monthly maintenance fees and more stringent qualifying criteria than those provided by larger or online banks.
• Credit unions: Credit unions typically offer interest-bearing checking accounts with slightly higher rates than you might find at banks. This is because credit unions are nonprofit organizations that reinvest profits into their members through higher rates.
•Online institutions: Online banks and credit unions generally offer the best rates for high-yield checking accounts. They can offer higher rates because they don’t need to pay the high overhead costs that brick-and-mortar do.
How to open a high-yield checking account
1
Gather documents:
Before you apply, you’ll need to gather your identity and financial documents, including a government-issued ID, Social
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2
Choose the account:
Research and compare several high-yield checking accounts, and choose the one with the best rates, lowest fees and minimal qualifying requirements.
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3
Complete the application:
For online institutions, you will need to complete an online application and might need to scan in and submit the required documents you have gathered.
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4
Apply:
Submit the application and wait for approval. Most will provide a decision within a few minutes. If you’re turned down, you will receive a notice explaining why.
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5
Make the opening deposit (if any):
If an opening deposit is required, make your deposit.
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6
Set up direct deposits:
Contact human resources to set up direct deposits with your employer. Provide your new account’s routing and checking account numbers.
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How to maximize a high-yield checking account
Set up direct deposits
Most accounts will require either a minimum number of monthly deposits or a minimum number of direct deposits. Set up direct deposits through your employer, or read the fine print to make the minimum number of required deposits in other ways.
Make debit card transactions
Read the fine print to determine how many debit card transactions you must make to earn interest and meet the minimum requirements.
Open other account types
Some institutions reserve the highest rates for customers who also open other accounts, maintain minimum balances or make a required number of monthly transactions. If you can, open another account to ensure you receive the highest interest rates.
Alternatives to high-yield checking accounts
Certificates of deposit
Certificates of deposits generally pay higher interest than the other alternatives, but you must leave your funds in the account for the CD’s term to avoid early withdrawal penalties. If you access your funds early, you could forfeit a significant portion or all of your earned interest.
Money market account
Money market accounts typically pay higher APYs than high-yield checking or traditional savings accounts but lower rates than high-yield savings accounts. Money market accounts allow you to write checks or use a debit card to access your funds. However, MMAs often have high minimum deposit requirements.
Traditional checking account
Traditional checking accounts don’t pay interest but provide easy access to your money. You can open a regular checking account at a local bank and use the debit card for free at linked ATMs.
High-yield savings account
High-yield savings accounts typically offer higher APYs than high-yield checking accounts. These are usually available online and pay much more than the average savings account rate. However, HYSAs do not have the same liquidity as checking accounts. Therefore, you would need to transfer funds from your HYSA to your regular checking account to access your money.
Our top picks for high-yield savings accounts
Are high-yield checking accounts worth it?
High-yield checking accounts are worthwhile if you can meet the qualifying criteria for the highest rates and maintain relatively high balances in your checking account. However, if you cannot stick to the requirements, you would be better served by an alternative savings option as you risk earning the fallback APY.
FAQ: Best high-yield checking accounts
Who pays the highest interest rate on checking accounts?
Consumers Credit Union Rewards Checking currently offers the highest interest rate with an APY of 5.00% for those who meet the minimum qualifying criteria.
What is a high-yield checking account?
A high-yield checking account is an interest-bearing checking account that allows you to earn interest on your deposits each month. A traditional checking account won’t pay interest.
Do savings accounts have higher interest rates than checking accounts?
High-yield savings accounts often pay higher interest than high-yield checking accounts with fewer requirements, but they offer less liquidity.
A high-yield checking account can be worth it if you already have an emergency fund saved in a different account and typically have a healthy checking account balance.
Which bank gives 7% interest on savings accounts?
No banks currently offer 7% interest on savings accounts. However, Landmark Bank currently offers a 7.50% APY on its premium checking account for balances up to $500.
What are the downsides to checking accounts with interest?
The primary downside to high-yield checking accounts is the sometimes onerous requirements for earning the highest advertised APY.
Christy Montour is a seasoned finance writer with extensive experience in explaining a wide range of investment types, retirement accounts, and insurance products. With a background in taxation from law school, Christy possesses a deep knowledge of tax strategies and the tax code.
Christy has written thousands of blogs for clients on finance and investment topics. She covers a wide range of subjects, from the Offshore Voluntary Disclosure Program to IRS installment plans, offers-in-compromise, tax liens, levies, and criminal tax issues such as tax evasion and fraud. Christy’s expertise allows her to break down complex financial topics into clear, accessible content for her readers.
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