Are you tired of earning minimal interest on your checking account? Look no further than high-yield checking accounts. These accounts offer higher interest rates than traditional checking accounts, allowing you to earn more on your money.
11 Best High-Yield Checking Accounts of February 2023
Axos is an online-only bank that offers a variety of checking account options to choose from. Their high-yield account is the Rewards Checking option, which offers an annual percentage yield (APY) of up to 1.25%.
Quontic High Interest Checking is an easy and convenient way to manage your finances. The process of applying online only takes 3 minutes and has no impact on your credit score.
CIT Bank offers an eChecking account that can be opened with as little as $100. The account has a tiered interest rate with an APY of 0.25% for account balances over $25,000 and 0.10% APY on balances under $25,000.
The SoFi Checking and Savings account offers a high APY of up to 3.75% for its members. It also offers a $250 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.
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.
Aspiration Plus is the bank’s premium all-in-one checking and savings solution that offers unlimited fee-free withdrawals at over 55,000 Allpoint ATMs.
Consumers Credit Union offers a great opportunity for those looking for a high-yield checking account. With an APY of 3% on balances up to $10,000, you can earn 80 times the national average rate.
Ally Bank: Interest Checking
Ally Bank offers an interest checking account with a competitive APY of 0.25%. This account gives you access to your paycheck up to two days earlier with early direct deposit, and allows you to deposit checks remotely.
The NBKC Everything Account offers a competitive APY of 1.26%, along with a range of convenient banking options.
With mobile banking available 24/7, you can access your bank account and manage your money on the go.
You can use your debit card anywhere Mastercard is accepted, and enjoy free online banking with bill pay and mobile deposit.
The account also provides free access to all NBKC ATMs and 37,000+ MoneyPass ATMs nationwide, with reimbursement up to $12/month for fees charged at other ATMs.
Additionally, you can set up auto pay for your bills, making it easy to stay on top of your payments and avoid late fees.
With a high APY and a range of features to make banking easy, the NBKC Everything Account is a great choice for anyone looking for a high-yield account with convenient banking options.
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.
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. The interest rate on these accounts can range from 0.25% to 1% APY or more. In comparison, traditional checking accounts often have interest rates 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 more 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 a variety of 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
When choosing a high-yield checking account, there are a few key factors to consider. First, be sure to look at the interest rate and compare it to other offers. Keep in mind that the interest rate is subject to change and may not be guaranteed.
Another significant factor to consider is the fees associated with the account. Some high interest checking accounts have monthly fees or minimum balance requirements. Look for accounts with low or no fees to maximize your savings.
It’s also essential to consider the bank or credit union’s reputation and financial stability. Look for institutions that are FDIC-insured or NCUA-insured to ensure your money is protected.
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.
High-Yield Checking Accounts FAQs
How does a high-yield checking account work?
A high-yield checking account operates similarly to a traditional checking account. To earn the highest interest 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.
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 I withdraw money from a high-yield checking account?
Yes, you can withdraw money from a high-yield checking account just like you would with a traditional checking account. Be sure to check if there are any withdrawal limits or restrictions associated with the account.
Are high-yield checking accounts FDIC insured?
Yes, high-yield 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.