You may get the best rates and earn interest on your checking account balance
If you tend to retain a sizable sum in your checking account, you may consider switching to a checking account that offers a higher interest rate. Most checking accounts do not pay any interest; nevertheless, the checking accounts listed below pay impressive annual percentage yields (APYs) while allowing you to keep your money accessible at all times.
Not only do the accounts that made the list offer some of the most competitive interest rates, but they also give vital checking account services such as the ability to write checks, pay bills online, make purchases with a debit card, and remotely deposit checks, amongst other capabilities. They offer deposit insurance backed by the federal government to keep your money safe. (The insurance coverage for the funds extends up to the maximum limitations.)
Most accounts only pay the highest rate on balances up to a specific limit and only if you meet certain other requirements. In addition, the highest rate is only paid on balances up to a certain maximum. When the limit is exceeded, the interest rate may fall steeply.
Below the chart, you'll find additional information about the best high-interest checking accounts, as well as the features of each account.
The following financial institutions have collaborated with us to bring you the checking account deals listed in the table below. You'll find extra information on our editors' selections for the top high-interest checking accounts and rates as of the 30th of July, 2021. The Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration provide insurance to each and every one of the listed banks and credit unions (NCUA).
Devon Bank
The Free Kasasa Cash Checking account offered by Devon Bank awards a significant annual yield (APY) of 2.50 percent on your checking account's first ten thousand dollars. Any amount over that will still earn an attractive annual percentage yield (APY) of 0.25 percent, a rate superior to what many savings accounts pay. No monthly maintenance fee is associated with the account, and the minimum deposit to open one is $25.
To be eligible for the rewards rate, you must have at least one monthly ACH credit or direct deposit, make at least 12 qualifying purchases with your debit card each month (each purchase must be at least $3), and sign up for online banking and online statements.
APY
|
2.50 % on the first $10,000; 0.25% on $10,001+ |
Monthly Fee
|
None |
ATM Fee Rebates
|
Up to $25 per month |
Minimum to Open
|
$25 |
Banking Access
|
Branches in California and Illinois. Kasasa Cash Account is only available to Illinois residents. |
Industrial Bank
Free Kasasa Cash Checking is available at Industrial Bank as well. Although the rates are lower than those offered by Devon Bank, you can receive the greatest rate, which is equivalent to 1.47 percent APY, on deposits of up to $15,000. No charge is imposed every month, and the amount required to initiate the account is a mere $25. (with no ongoing minimum requirement).
To be eligible for the best rate, you need to make at least 12 purchases with your debit card each month that meet specific criteria, log into your online banking account each month, and choose to get electronic statements.
APY
|
1.47% on the first $15,000; 0.199% on $15,001+ |
Monthly Fee
|
None |
ATM Fee Rebates
|
Up to $25 per month |
Minimum to Open
|
$100 |
Banking Access
|
Branches in Maryland, New Jersey, New York, and Washington, D.C. Over 55,000 ATMs nationwide. Customers nationwide can apply for an account. |
La Capitol Federal Credit Union
Choice checking accounts at La Capitol Federal Credit Union, also known as "La Cap," are eligible for significant dividend payouts. The greatest interest rate is only available on the first $3,000 you deposit into this account; the rate gradually decreases until it reaches the base level. Because of this, this account may be suitable for individuals who maintain a relatively little balance.
To qualify for the best rate, account holders must make at least 15 eligible purchases with their debit card each month or keep a minimum balance of $1,000 in their checking account. Although the credit union's headquarters are located in Louisiana, anyone, regardless of where they call home, is welcome to join.
You are qualified to join La Cap if you have previously become a member of the Louisiana Association for Personal Financial Achievement (ACHIEVE) by paying an initial membership fee of $20 and continuing fees of $5 annually afterward. In addition, you'll need to have at least five dollars in a savings account.
APY
|
4.25% on the first $3,000; 2.00% on $3,001 to $10,000 0.10% on $10,000.01+ |
Monthly Fee
|
$8, waived with $1,000 daily balance or 15 qualifying debit card purchases per month |
ATM Fee Rebates
|
Up to $25 per month |
Minimum to Open
|
$50 |
Banking Access
|
Over 30,000 free ATMs and over 5,600 branches through the CO-OP shared branching network |
Consumers Credit Union
The Rewards Checking account from Consumers Credit Union (CCU) is available in a number of different rate tiers. The more obstacles you overcome, the better your rate will be. However, the maximum high-interest balance you can carry at CCU is $10,000.
Account-holders who want to earn the highest rate are required to meet the following criteria:
- Please make at least 12 purchases using their debit card each month.
- Make purchases using their CCU Visa credit card that total at least $1,000 each month.
- Enroll in electronic statements and communications, and make monthly deposits of at least $500.
Although CCU is a relatively tiny financial institution, you can use the CO-OP shared branching network to get free access to ATMs and branches all over the United States. Everyone in the United States can become a member of CCU by paying the one-time charge of $5 to become a member of the Consumers Cooperative Association. In addition, you'll need to have at least five dollars in a savings account.
APY
|
4.09% on the first $10,000
0.20% on $10,001 to $25,000.00
0.10% on $25,001+ |
Monthly Fee
|
None |
ATM Fee Rebates
|
Unlimited |
Minimum to Open
|
$5 |
Banking Access
|
Over 30,000 ATMs and over 5,600 branches through the CO-OP shared branching network |
Evansville Teachers Federal Credit Union
The Evansville Teachers Federal Credit Union (ETFCU) offers a competitive interest rate on accounts with a significant amount of money. Consequently, the possibility of earning more money through this account than through other accounts shows greater rates.
Your Vertical Checking account will earn the maximum rate of interest available from ETFCU on balances up to $20,000. To qualify for that rate, you will need to make at least 15 purchases with your debit card each month that meet the requirements, as well as make at least one direct deposit each month, log in to your mobile or online banking each month, and sign up for electronic statements.
You do not have to be a teacher to become a member of ETFCU. All you require is a one-time $5 contribution to the Mater Dei Friends and Alumni Association during the application process. In addition, you'll need to have at least five dollars in a savings account.
APY
|
3.30% on first $20,000 |
Monthly Fee
|
None |
ATM Fee Rebates
|
Up to $15 per month |
Minimum to Open
|
$25 |
Banking Access
|
Nearly 5,000 fee-free ATMs nationwide |
Western Vista Federal Credit Union
The Panorama Checking account offered by Western Vista Federal Credit Union is a high-yield checking account that is relatively easy to use. You can earn the maximum rate possible by performing just 10 transactions per month with a total value of $5 or more, signing up for electronic statement delivery, and having at least one direct deposit performed each month. Additionally, the credit union will reimburse you for up to $25 per month in ATM costs paid to other institutions.
By making a modest contribution to the Western Vista Community Foundation, anyone in the United States can become eligible for membership. However, no application can be completed online, so you must fill out a form at a branch near you. In addition, you'll need to have at least $25 stashed away in a savings account.
APY
|
2.53% on first $15,000; 0.01% on $15,000.01 and greater |
Monthly Fee
|
None |
ATM Fee Rebates
|
Up to $25 per month |
Minimum to Open
|
None |
Banking Access
|
Over 30,000 free ATMs and over 5,600 branches through the CO-OP shared branching network |
Paramount Bank
Other high-interest checking accounts may take more from you than you are willing to deal with every month, depending on the conditions of the account. If this is the case, the High-Interest Checking account offered by Paramount Bank could provide the ease of use you've been looking for.
Simply registering with the bank on the internet makes membership open to all. You do not need to use your debit card many times to maintain the account, and you earn the same rate on balances that are less than $100,000. It is not as high as some of the other APYs on this list, but it is still not terrible for today's market, and there are many fewer conditions to meet that rate.
APY
|
0.65% on all balances under $100,000 |
Monthly Fee
|
$3 (waived with at least $1 in your account) |
ATM Fee Rebates
|
Up to 20 ATM fees per month |
Minimum to Open
|
$100 |
Banking Access
|
Branches available in Florida, Ohio, Illinois, Iowa, Missouri, Texas, California, Kansas, and Arizona |
Compare Providers
Bank or Credit Union
|
APY
|
Minimum Balance Required to Open
|
High-Interest Balance Limit
|
Monthly Fee
|
| Devon Bank |
Up to 2.50% |
$25 |
$10,000 |
None |
| Industrial Bank |
Up to 1.47% |
$100 |
$15,000 |
None |
| La Capitol Federal Credit Union |
Up to 4.25% |
$50 |
$3,000 |
$8 (waivers available) |
| Consumers Credit Union |
Up to 4.09% |
$5 |
$10,000 |
None |
| Evansville Teachers Federal Credit Union |
Up to 3.30% |
$25 |
$20,000 |
None |
| Western Vista Federal Credit Union |
Up to 2.53% |
None |
$15,000 |
None |
| Paramount Bank |
0.75% |
$100 |
$100,000 |
$3 (waiver available) |
Frequently Asked Questions (FAQs)
What exactly is meant by a checking account with a high-interest rate?
A checking account with an annual percentage yield (APY) higher than the average is known as a high-interest checking account. This is important for people who store significant sums of money in their checking accounts. Many checking accounts do not offer any interest on your money or only offer a very small amount of interest. This is a disadvantage because interest means free financial development for you simply for maintaining your money at a specific financial organization.
Many banks offering checking accounts with a higher APY are less well-known. However, they are still regarded as solid financial institutions, and the FDIC will protect the money you deposit in these accounts.
How does the process of a checking account work that pays a high interest?
You can make deposits and keep money in the account if you have a high-interest checking account, use checks to pay for things, or make purchases with a debit card just like you would with a regular checking account and earn interest on the money you keep there. The most crucial distinction is that a high-interest checking account will give you an above-average annual percentage yield (APY), resulting in more money over time. The annual percentage yield (APY) on the top high-interest checking accounts typically exceeds 1 percent and can even go above 3 percent.
You are typically required to fulfill several monthly conditions. These conditions may include completing a certain number of debit card transactions (usually between 10 and 15), making a specific number or dollar amount of direct deposits, enrolling in online banking, or signing up for electronic bank statements. One more distinction is to earn the high APY offered by these accounts.
You will still have access to your money whenever you need it if you have a checking account that offers a competitive interest rate. In contrast to many high-yield savings accounts, there are no limits placed on the number of transactions the account holder can execute. Some financial institutions that provide these accounts will charge you a fee if you use an ATM not on their approved list when you try to withdraw money from your account.
What does it mean when something has an annual percentage yield (APY)?
The annual percentage yield, or APY, refers to the rate of return, in percentage terms, that you can earn on particular financial accounts, such as savings or checking accounts. It depends not only on the interest rate but also on the frequency with which the interest compounds.
The annual percentage yield (APY) is the rate calculated by adding the interest earned on earnings to the interest earned on the initial deposit (the principal). The annual percentage yield, or APY, refers to the amount of money that can be earned by simply depositing funds at a reputable financial institution.
What are the fees associated with high-interest checking accounts?
Numerous high-interest checking accounts do not impose a monthly fee or minimum balance limitations. Because you only receive interest on the money you keep in the bank, the financial institution has to pay fewer fees, which they will then pass on to you. However, to earn the APY advertised by some high-interest checking accounts, you may be required to meet specific criteria, and the account may only pay out at that rate on deposits up to a particular threshold.
They may also possibly charge you a monthly fee in addition to other fees, such as fees for making withdrawals from ATMs that are not part of their network. Accounts that include monthly fees can cost anywhere from one to ten dollars per month. However, these costs are frequently waived provided certain requirements are met, such as maintaining a specific minimum balance in the account.
Which is the better way to manage your money –– a checking or savings account?
Your requirements, as well as the characteristics of the financial institution that you deal with, should guide your decision regarding whether or not to retain your money in a savings or a checking account. High-interest checking accounts can pay out virtually the same amount, or even more, as many different types of savings accounts if you choose the correct financial institution to open the account with. You need to decide if you will make many purchases or write many cheques to fulfill your obligations.
You should open a checking account if you answered "yes" to either of these questions. You will be able to take full advantage of everything each platform offers if you have both accounts, which is why there is absolutely no reason not to do so. But if you are able to keep money in a single place and wish to create a cash reserve for a specific reason, a savings account is generally a superior alternative.
Our methodology in choosing the best high-interest checking accounts best suited for you
We analyzed over twenty-dozen of the top high-interest checking accounts and selected seven of the accounts with the greatest annual percentage yield (APY), which offer the best opportunities for your money to grow at competitive interest rates. We did not just judge each account based on its APY; instead, we considered various fundamental checking account features, the quality of the banking experience, and the consistency of each choice's positive client feedback.
