Even though most high-yield checking accounts are free to open and maintain, there are still some requirements you’ll have to fulfill in exchange for the rewards — such as meeting a minimum balance, making a certain number of transactions or opening an additional account. If you find one that works in your favor, the right high-yield checking account can serve as the perfect place for your paychecks.
Here are our top picks for high-yield checking accounts, how to open one and the pros and cons to consider before you do.
What is a high-yield checking account?
A high-yield checking account is a checking account that lets you earn interest on your balance. But you generally won’t earn as much as some of the high-yield savings account rates.
“Yields may be lower on checking accounts versus savings accounts because banks are likely more involved operationally with checking accounts — be it in the facilitation of transactions or customer service, that comes at a cost,” said Tim Melia, a certified financial planner at Embolden Financial Planning.
Some banks have requirements to earn interest on your checking account — such as keeping a minimum balance or making a certain number of transactions. But if you can maintain the requirements, the account may be worth the extra dollars you’ll earn in interest. Most online-only banks offer high-yield checking accounts with varying annual percentage yields, or APYs.
Otherwise, it will function like a regular checking account. You’ll still get a debit card (in most cases) for making purchases or using an ATM, as well as other bank-specific perks.
Axos’ Rewards Checking account pays up to 3.30% APY — one of the best rates for a high-yield checking account — but its steep APY requirements are complex. You must make monthly direct deposits of at least $1,500, 10 point-of-sale transactions per month (a minimum of $3 each), maintain an average daily balance of at least $2,500 in an Axos Invest Self Directed Trading Account and make a monthly Axos loan payment. You’ll earn some interest for each requirement that you meet.
There’s a minimum $50 deposit to open an account, but there aren’t any monthly fees. We also like that Axos offers unlimited domestic ATM fee reimbursements and a limited-time $100 welcome bonus. And even though Axos is an online-only bank, there’s a 24/7 virtual financial assistant.
Read our Axos Bank review.
Quontic is an online-only bank that offers three checking accounts. Its high-yield checking option offers up to 1.10% APY when you make at least 10 qualifying debit card transactions of $10 or more per statement cycle. If not, you’ll earn 0.01% APY.
One unique feature is Quontic’s Pay Ring, a wearable payment device that lets you pay in person without your debit card. The mobile app also offers the convenience of mobile check deposits, bill pay, transfers and more. The account requires a $100 opening deposit, and you won’t have to worry about overdraft fees or ATM fees at AllPoint, MoneyPass, SYM or Citibank ATMs at select locations. However, you won’t be reimbursed for out-of-network ATM fees.
Read our Quontic Bank review.
Ally is growing to be a household name with a few unique perks for its high-yield checking account beyond its 0.25% APY. To start, Ally will reimburse you up to $10 per statement cycle for out-of-network ATM fees, and you can get your paycheck up to two days sooner. What we like most are the spending buckets you can use to organize your money in your checking account — whether for bills, an expense or an outing. And you’ll never get hit with an overdraft fee — Ally’s CoverDraft offers up to $250 in temporary overdraft relief if you make at least $250 in direct deposits for two months in a row. Otherwise, the overdraft coverage amount drops down to $100.
Ally also doesn’t charge for monthly maintenance, cashier’s checks or expedited Automated Clearing House, or ACH, transfers. But there is a drawback: Ally doesn’t let you deposit cash. You’ll need to make an online transfer, direct deposit, wire transfer or mail a check.
Read our Ally Banking review.
SoFi uniquely offers a high-yield checking and savings account to maximize the interest you’ll earn on your deposits. You’ll earn 1.20% APY on your checking balance and 4.20% on your savings. There are no account fees; right now, there’s a limited-time welcome bonus with qualifying deposits.
We like that this account is packed with other perks like getting your paycheck up to two days early, up to 15% cash back at local retailers when you pay with your SoFi debit card and up to $50 in overdraft coverage with no fees if you meet qualifying direct deposit requirements.
There are no minimum deposit requirements or hooks. However, SoFi is an online-only bank, which will be a downside if you need physical branch access.
Read our SoFi Bank review.
Capital One is among the few high-yield checking account options with physical branches. Its 360 Checking account pays 0.10% APY, which doesn’t offer a big return. But Capital One is a good choice for flexibility and convenience. You can get your paycheck up to two days sooner and deposit cash into your account at any CVS location. Plus, you’ll have a few fee-free overdraft options to choose from.
There are no fees or minimum deposits. However, you’ll be charged for normal banking services like a cashier’s check, outgoing wire transfers and printed checks. One drawback is that you’ll only receive one debit card for your Capital One 360 checking account, even if you have multiple accounts, which can be either a hassle or convenience, depending on your preference.
What we like most is that Capital One has many locations, branches and cafes to manage your money nationwide. You can check Capital One’s map to find the closest one.
Read our Capital One Bank review.
Alliant Credit Union’s high-yield checking account doesn’t charge for monthly service or overdrafts. It pays a 0.25% APY on your checking account balance and $20 per month in ATM fee rebates. To earn interest, you must opt into e-statements and have at least one monthly electronic deposit.
We like that Alliant also offers Courtesy Pay to cover checks, payments and transfers beyond your overdraft protection. However, the overdraft balance is due immediately. But like most credit unions, you’ll need to become a member to open an account. The easiest way to qualify is to become a Foster Care to Success member. Alliant will cover the one-time $5 membership fee to sign up, and then you can create your Alliant account.
Read our Alliant Credit Union review.
Pros
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Earn interest on your checking balance.
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Banking services and features are still available for everyday use.
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Cash and direct deposits are usually available.
Cons
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A minimum balance may be required.
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May have a cap or threshold to earn the highest interest rate before it drops.
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Not offered at most traditional banks.
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Lower APYs than high-yield savings accounts, on average.
What to look for in a high-yield checking account, according to an expert
Checking all the right boxes for the right high-yield checking account can be overwhelming. But think about how you plan to use the account most and whether you make enough transactions to meet interest-earning requirements. Keep other features in mind that you may enjoy — like early payday and mobile check deposit. Here’s what else to look for, according to Cyrus Vanover, a financial expert and founder of Frugal Budgeter.
A high APY: “Look for a competitive interest rate,” said Vanover. “High-yield checking accounts offer higher interest rates compared to traditional checking accounts, so ensure that the rate being offered is attractive.”
Easy-to-meet minimum balance requirements: “Some high-yield checking accounts may require you to maintain a certain balance to qualify for the higher interest rate,” said Vanover. “Consider your financial situation and ensure you can comfortably meet the minimum balance requirements without incurring fees.”
Low or no fees: “High-yield checking accounts can sometimes come with monthly maintenance fees or transaction fees,” said Vanover. “It’s important to understand the fee structure and evaluate if the potential earnings outweigh the costs.”
Fee-free ATM access: “Many high-yield checking accounts are associated with nationwide ATM networks or reimburse ATM fees charged by other banks,” said Vanover. “Having convenient and cost-effective access to ATMs is crucial for day-to-day banking activities.”
Federal Deposit Insurance Corporation-insured: “Finally, it’s important to verify that the high-yield checking account you are considering is insured by the FDIC. This ensures that your deposits, up to $250,000 per depositor, are protected in case of bank failure,” said Vanover.
How to choose the best high-yield checking account
Start by researching banks that offer high-yield checking accounts. You can use the list above as a reference. Be sure to look for a competitive APY and weigh any requirements, such as a minimum balance or required deposit. Most importantly, ensure the bank is insured by the FDIC (or National Credit Union Administration in the case of credit unions) to protect your funds if the bank fails.
Choosing between traditional and high-yield checking accounts
Even though earning interest on funds that you’re already depositing may seem ideal, there are some cases where choosing a traditional checking account may be worthwhile, said Vanover.
You may choose a traditional checking account if you need more in-person banking services like check writing, cash deposits or live assistance. And a traditional checking account may be easier to open and manage, depending on your preference.
But it all boils down to how much money you keep in your account. “If you typically maintain lower balances in your checking account, opting for a traditional checking account might be more suitable,” said Vanover. That’s because high-yield checking accounts usually have required minimum balances to earn interest. And, if you carry a low checking account balance, the APY you earn likely may not be enticing enough to justify monthly fees or other requirements.
You may also have to make a certain number of transactions using your debit card or meet other requirements to earn a return or keep your account in good standing. “If you can’t consistently maintain the minimum balance, you might end up paying monthly maintenance fees that could offset the benefits of the higher yield,” Vanover added.
FAQs
Whether or not you earn interest on the full checking amount depends on the bank. Some banks have a certain limit in which you can earn the highest interest rate before dropping the APY. For instance, you may only earn 1.25% on checking balances up to $5,000; then, the APY may drop to 0.50%. It’s best to check the details before opening the account.
If you need to make daily purchases or withdrawals, a high-yield checking account is a better option than a high-yield savings account. Most savings accounts have monthly withdrawal limits and don’t have debit card access for in-person transactions. But if you don’t plan to touch the funds regularly and set aside money toward a goal you can earn a better return with the right savings account.
Methodology
CNET reviewed high-yield checking accounts based on the latest APY information, fees charged and services offered from issuer websites. We evaluated high-yield checking accounts from several banks, credit unions and financial companies. We selected the accounts with the highest APY and were insured up to $250,000 from among the organizations we surveyed.
We also considered minimum deposit requirements, monthly maintenance fees and eligibility to make sure the account is easily accessible for everyone. We will continue to regularly evaluate online checking accounts to review the list.
