What Is a High-Yield Checking Account?

A high-yield checking account—sometimes called rewards checking or high-interest checking—works like any interest-bearing checking account, but offers a much more competitive annual percentage yield (APY). In exchange for this higher rate, customers typically have to meet monthly eligibility requirements, such as maintaining a minimum balance and completing a certain number of debit transactions during the statement period. The best high-yield checking accounts pay rates⛄ that may be competitive with high-yield savin🍷gs accounts or CD rates.

How Do High-Yield Checking Accounts Work?

High-yield checking accounts generall🐽y work like any other checking acဣcount except that to earn the best yield, you may have to meet certain monthly requirements, like making a certain number of debit card transactions. These requirements are typically more difficult to meet than those of an average checking account, and there may be more of them. 

The checking account balance 澳洲幸运5开奖号码历史查询:earns interest each statement period. The amount of interest you earn may depend on whether or not you complete the required activities for that period. Although the best rate may be very good, if you don’t meet the requirements🧔, the alternative rate may be quite low.

High-yield checkin🦋g accounts have the same kinds of fees as other checking accounts, like monthly fees and paper st🐭atement fees.

How to Qualify for a High-Yield𓆉 Checking Account 

Every bank and credit union sets its own terms and conditions for high-yield checking accounts. To earn top interest, you may have to meet any combination of the following requirements:

• Minimum opening deposit: Some high-yield checking accounts have minimum opening deposits as high as $500, although many are smaller and some have no such requirement.
• Minimum number of monthly debit card transactions: This can be as high as 15, so it could take some getting used to if you don’t regularly use a 澳洲幸运5开奖号码历史查询:debit card for spending.
• Set up direct deposit to the account: Some banks may also specify a minimum amount for the direct deposit.
• Maintain a minimum balance for the statement period: With some accounts, you might forfeit the best yield or pay a fee if you drop below a designated 澳洲幸运5开奖号码历史查询:minimum balance amount; some will look at your average daily balance amount for the month.
• Enroll in online banking: This is the standard in many cases today, but if you haven't engaged in online banking before, this requirement might be more burdensome.

Hig🅰h-Yield Checking vs. High-Yield Savings 🃏Accounts

In general, a high-yield savings account may offer more benefits without stringent account requirements, like monthly debit card transactions. You can keep money there, and transfer it to a checking account as needed. That said, there could be times when it makes more sense to go with a high-yield checking account, such as if APY offers are better. 

H꧟ere are some of the accou🍸nt differences to help you choose between the two.

Pros & Cons of High-Yield Checking Accounts

Pros Explained 

• Opportunity to earn interest on everyday banking: If rates are competitive and you have a lot of checking-account activity anyway, high-yield checking accounts could be worth exploring.
• High yield and high access to funds: Unlike savings accounts that might have 澳洲幸运5开奖号码历史查询:withdrawal or transaction limits, high-yield checking accounts provide ongoing easy access to your funds.
• May include additional account perks like ATM rebates: Some high-yield checking accounts provide rebates on ATM fees incurred when you use out-of-network machines.

Cons Explained

• High number of debit transactions usually required: Using your debit card more frequently (as much as 10 to 15 times per month) might have you missing out on potential credit card rewards, not to mention the extra 澳洲幸运5开奖号码历史查询:consumer protections that credit cards provide.
• Minimum average balance may be required: Some accounts might require you to keep a certain threshold of money in your account to earn the best APY. If that’s not realistic for your budget, then you’d be better served with a 澳洲幸运5开奖号码历史查询:high-yield savings account instead.
• APY earnings may be capped: Most high-yield checking accounts put a cap on the amount that earns interest at the best rate, like $10,000 or $25,000. Be sure to check this so you can maximize your interest-earning potential by depositing some money elsewhere if needed.

How to Find a High-Yield Check෴ing A♉ccount That Works for You

Research the foll✅owing factors to find theဣ best high-yield checking account:

• Interest rate: If you’re looking for earnings potential, start by comparing APYs.
• Fees: Monthly maintenance fees and fees for not meeting minimum balance requirements can quickly eat away at your earnings, so learn what you need to do to avoid those.
• Balance requirements: Is there a minimum balance requirement and is it realistic for you to maintain it?
• ATM policies: Some high-yield checking accounts may offer rebates on outside ATM fees, which is worth looking for if you withdraw cash often.
• App/online features: If you prefer online banking, enjoy the convenience of mobile check deposit, or like being able to use texts for basic account functions, you may find an account with those features.
• Customer service: It’s important to feel comfortable with your bank, which could mean being able to pop into a local branch or just getting someone by phone or live chat if you have an issue.

Frequently Asked Questions (FAQs)

The Bottom Line

Whether a 澳洲幸运5ꦚ开奖号码历史查询:high-yield checking account is worth it comes down to current rate offers across different account types and how challenging it would be for you to meet the account requirem༺ents. If checking account rates are more favorable than savings account rates and you’re already using your debit card for purchases throughout the month, t꧃hen it’s likely a no-brainer for you. 

On the other hand, if it’s challenging for you to meet the monthly requirements and/or high-yield savings account rates are higher or comparable, then you may be better off with a 澳洲幸运5开奖号码历史查询:high-yield savings account. There is less account management to keep track of, and you may be less apt to spen♐d you💝r earnings because savings accounts make it a bit harder to access the funds than checking accounts.