Upgrade is a San Francisco-based fintech that offers two deposit products aimed at people who want to earn more on their money without dealing with the usual banking headaches. Its Rewards Checking Preferred account pays up to 2% cash back on everyday debit purchases, and its Premier Savings account earns 3.05% APY with no monthly fees.
This review covers how both accounts work, what the cash-back and APY requirements actually look like in practice, the $1 million FDIC coverage through participating institutions, and how Upgrade stacks up against Chime, SoFi, Varo, and Ally. We based this on Upgrade’s own disclosures and current product pages, cross-referenced against rates published in April 2026.
If you’re deciding whether to move your primary checking or park an emergency fund here, this review will help you figure out if Upgrade fits your setup.
Rewards Checking Preferred Account Features
The Rewards Checking Preferred account is Upgrade’s primary debit and bill-pay account, and it’s designed to reward people who route a paycheck through it. There are no monthly maintenance fees, no overdraft fees, and no minimum balance requirements.
Cash Back Tied to Direct Deposit Activity
The cash-back rate you earn depends on whether you set up a qualifying direct deposit of $1,000 or more per month. Accounts that meet that threshold unlock the full rewards structure:
- 2% cash back: on common everyday expenses including convenience stores, drugstores, restaurants, gas stations, monthly utilities, and subscriptions like streaming services and phone bills.
- 1% cash back: on all other eligible debit card purchases.
- Annual cap: the 2% rate is capped at $500 in rewards per calendar year, after which eligible purchases earn 1%.
Accounts without a $1,000 monthly direct deposit within 60 days of opening earn a reduced structure of 1% on the bonus categories and 0.50% on everything else.
ATM Access and Early Direct Deposit
Rewards Checking Preferred customers get fee-free access to over 55,000 Allpoint ATMs nationwide, including locations inside Walgreens and CVS. The account also supports early direct deposit, which can get your paycheck into your account up to two days ahead of the scheduled pay date.
Other standard features include mobile check deposit (available once you meet the $1,000 direct deposit threshold), internal and external transfers, and built-in overdraft protection.
Discounts on Upgrade Loans and Cards
One perk that tends to get overlooked: existing checking customers can qualify for a discount of up to 20% on the interest rate for a new Upgrade personal loan or Upgrade Card. If you were already considering Upgrade’s credit products, this alone can justify opening the account.
Premier Savings Account Features
The Premier Savings account is Upgrade’s high-yield savings product, and it’s a solid option for anyone looking to earn a competitive rate without the usual restrictions you see at digital banks.
3.05% APY With a $1,000 Minimum Balance
The current APY on the Premier Savings account is 3.05%, and it’s a variable rate. There’s one important condition: you need to maintain a daily balance of at least $1,000 to earn the rate. If your balance drops below $1,000 on any given day, you earn 0% APY for that day.
There’s no minimum deposit to open the account and no cap on the balance eligible to earn interest. Interest compounds daily and is credited monthly.
FDIC and NCUA Coverage Up to $1 Million
This is one of Upgrade’s standout features. Premier Savings deposits are insured up to $1 million through FDIC and/or NCUA coverage at Cross River Bank or participating institutions, well beyond the standard $250,000 you get at most banks. Upgrade accomplishes this through a custodial deposit program that spreads your funds across multiple insured banks.
For savers with larger balances, this is a meaningful safety net you typically only see with money market accounts or cash management products.
Deposit and Withdrawal Options
Funding a Premier Savings account works through ACH transfers, wire transfers, or direct deposit. You can link external bank accounts for easy transfers in and out. Upgrade does not accept cash deposits.
Joint accounts are available for both Premier Savings and Rewards Checking Preferred, which is a newer addition.
Current Sign-Up Bonus Offer
New Upgrade checking customers can earn a $200 bonus by opening and funding a new Rewards Checking Preferred account and completing three qualifying debit card purchases within 60 days of opening. The bonus is credited within 60 days after you meet the requirements, and ATM transactions don’t count toward the three purchases.
This offer is only available to new checking customers. Previous Upgrade checking customers aren’t eligible.
Security and Banking Partner
Upgrade is a fintech, not a bank. Your deposits sit at Cross River Bank and, for Premier Savings accounts, a network of program banks that extend FDIC coverage up to $1 million. Cross River is a New Jersey-based bank known for its fintech partnerships and has the regulatory track record Upgrade relies on to offer these accounts.
Account access is protected with standard industry security including encryption, two-factor authentication, and fraud monitoring. Upgrade maintains an A+ BBB rating and supports both iOS and Android apps with strong user reviews.
How Upgrade Compares to Other Digital Banks
Upgrade sits in a competitive space, and each alternative has tradeoffs worth understanding before you commit. Here’s how the main options compare on APY, cash back, and structural differences.
Current
Current is a mobile-first fintech built around its Savings Pods feature, which lets you set goals and earn a 4.00% bonus rate on up to $2,000 per pod. You can run up to three pods at a time, so the maximum balance earning the bonus rate is $6,000.
To qualify, you need to receive at least one direct deposit of $200 or more every 35 days. Balances beyond the $6,000 cap earn 0.25%. Current also offers debit rewards and credit-building tools through its Build account.
Best for: people with smaller savings balances who want the highest rate on the first $6,000 and flexibility through goal-based pods.
Chime
Chime is the best-known digital bank in this category, but its savings yield now depends heavily on whether you qualify for Chime+. Chime Savings pays 1.00% APY for standard members and 3.50% APY for Chime+ members, which requires qualifying direct deposit activity. Chime also offers a Credit Builder secured card, which Upgrade doesn’t directly compete with.
Best for: people who want an entry-level digital bank with credit-building tools.
SoFi
SoFi combines checking, savings, investing, and lending into one platform. SoFi members with eligible direct deposit or $5,000 in qualifying deposits every 31 days earn 3.30% APY on savings. New members can currently earn a limited-time boost up to 4.00% APY. Checking earns 0.50% APY on balances.
Best for: people who want to consolidate banking, brokerage, and borrowing in one app.
Varo Bank
Varo leads the group on headline APY, but there’s a catch. Varo pays 5.00% APY only on the first $5,000 of your savings balance, and only if you receive direct deposits of $1,000 or more in a month and end with a positive balance. Anything above $5,000 earns 2.50% APY, which is also the standard rate if you don’t qualify.
Best for: people with smaller savings balances who can reliably hit the direct deposit threshold.
Ally Bank
Ally is a full-service online bank with a more traditional product lineup including CDs, auto loans, and investment accounts. Ally’s savings account currently pays 3.30% APY with no minimum balance and no monthly fees. It lacks a cash-back debit program, so it’s better suited for people who value ecosystem breadth over rewards.
Best for: people who want a complete online banking relationship rather than a debit rewards play.
Where Upgrade Wins and Loses
Upgrade sits in a middle lane. Its 3.05% APY is lower than Varo’s headline rate and slightly below Ally and SoFi, but the $1 million FDIC coverage is a real differentiator for savers with larger balances. On checking, the 2% cash back on everyday categories is the cleanest debit rewards structure in the group, and the $500 annual cap is easy to hit for most spenders.
Where it falls short: the $1,000 minimum balance on savings cuts out small savers, and the 2% cash back requires direct deposit to unlock.
Pros and Cons
Before opening an account, here’s the quick summary of what Upgrade does well and where it comes up short.
Pros
- Up to 2% cash back: on everyday debit card spending with direct deposit.
- 3.05% APY on savings: with up to $1 million in FDIC/NCUA insurance.
- No monthly fees: no overdraft fees, and no minimum balance to open an account.
- Early direct deposit: access paychecks up to two days early.
- Loan rate discount: up to 20% off on Upgrade personal loans and cards for account holders.
Cons
- $1,000 direct deposit required: to unlock the full 2% cash back and mobile check deposit.
- $1,000 minimum balance on savings: to earn the 3.05% APY.
- No physical branches: and limited cash deposit options.
- No CDs or money market accounts: if you’re looking for laddered savings products.
Who Should Open an Upgrade Account
Upgrade works best for people who already have their paycheck set up for direct deposit and want to stack everyday cash back with a solid savings yield. The combination of no monthly fees, straightforward rewards, and extended FDIC coverage makes it particularly strong for savers with larger emergency funds who want better insurance than the standard $250,000 limit.
It’s less useful if you can’t hit the $1,000 monthly direct deposit, rely on cash deposits, or need a broader product mix like CDs, investment accounts, or mortgages. In those cases, Ally or SoFi may fit better.
Final Thoughts
Upgrade has carved out a clear position: clean rewards, competitive savings yield, and insurance coverage that outpaces almost everyone else in the digital banking space. The accounts are free to open, the app works well, and the 2% cash back is easy to actually earn if you route your paycheck through it.
The two things to watch are the $1,000 minimum balance on savings and the direct deposit requirement on checking. If those fit your situation, Upgrade is one of the stronger all-around options available right now. If they don’t, you’re better off comparing against Varo for high APY on smaller balances or Ally for a deeper product lineup.
For anyone focused on earning more on both spending and saving without paying fees to do it, Upgrade deserves a serious look.
Frequently Asked Questions
Is Upgrade a real bank?
No. Upgrade is a financial technology company, not a bank. Your deposits are held at Cross River Bank, a New Jersey-based FDIC-insured bank, and for Premier Savings accounts, funds are also spread across a network of participating institutions to extend coverage up to $1 million. Upgrade itself handles the app, customer experience, and product design, while the banking infrastructure sits with its partners.
Does Upgrade do a credit check to open a checking or savings account?
No. Opening a Rewards Checking Preferred or Premier Savings account does not involve a hard credit check. Upgrade uses ChexSystems and identity verification to approve new deposit accounts, so your credit score won’t be affected when you apply. Credit checks only come into play if you apply for one of Upgrade’s loan or credit card products.
How do I deposit cash into my Upgrade account?
Upgrade does not accept direct cash deposits. If you need to add cash, the workaround is to deposit it at another bank account you already have and then transfer the money to Upgrade via ACH. Some people also use money orders, which can be deposited through mobile check deposit once your account qualifies for that feature.
Can I use my Upgrade debit card internationally?
Yes. The Upgrade Visa debit card works anywhere Visa is accepted around the world. Foreign transaction fees may apply on international purchases, so check your account disclosures before traveling. The card also supports Apple Pay and Google Wallet, which can come in handy for contactless payments abroad.
How long does it take to get approved for an Upgrade account?
Most applications are approved within a few minutes. The online signup process takes about five minutes to complete, and once approved, your account is active right away. You can fund it immediately through an ACH transfer from an external bank, or set up direct deposit with your employer to unlock the full cash-back and savings benefits on your next pay cycle.
