If you’re a savvy saver, you know that a high-yield savings account can help propel you toward your savings goals. High-yield checking accounts are much tougher to find, however. Most banks don’𒐪t offer any interest at all on checking accounts, but some do—and a lot of it. 

The best high-yield checking accounts can sometimes offer just as much interest as high-yield savings accounts, but they usually come with more requirements. For example, you might need to make a certain number of debit transactions each month to qualify for the high rate. Many people don’t find these requirements worth the hassle, but if you can meet them without going out of your way each month, this type of bank account couldಌ be a good fit.

Is a High-Yield Checking Account Right for Me?

Just like with 澳洲幸运5官方开奖结果体彩网:high-yield savings accounts, banks and credit unions sometimes offer 澳洲幸运5官方开奖结果体彩网:high-yield checking accounts with rates as high as 6.0% annual percentage yield (APY) as a way to grow your deposits. This is much higher than the national average rate for checking accounts (or even savings accounts). High-yield checking accounts generally come with more limitations and monthly hoops you’ll need to jump through, however, such as making a certain number of debit transactions each month or receiving a 𓄧certain amount in direct deposits. 

For example, La Capitol Federal Credit Union offers up to 6.25% APY on your first $10,000 stored in a high-yield checking account (0.72% APY on any additional funds), if you make at least 15 monthly debit card transactions.

Other accounts ask for more from you. Pelican State Credit Union offers 6.05% APY on up to $🤪20,000 (0.50% on the portion of the balance greater than that), for example, but requires:

• At least 15 monthly debit card transactions
• One direct deposit, online bill payment, or automatic payment (ACH) per month
• Enrollment in electronic statements

If you don’t meet these requirements, you’ll only earn 0.05% APY on your checking account balance.

Unless you migrate all of your everyday banking over to the new financial institution, it’ll probably be difficult to ensure you meet these requirements each month. It’s easy to open a high-yield savings account at another bank and park some cash there, but it’s another thin𝓀g entirely to tick off the required boxes each month for a high-yield checking account while also maintaining your main checking account at another bank. 

Pros and Cons of High-Yield Checking Accounts

The🦄re are more factors to weigh when you’r🍃e trying to decide whether high-yield checking accounts are worth it or not.

High-Yield Checking Account Pros

• High interest rate on balance: The biggest benefit of high-yield checking accounts is earning a great rate on a pot of money that normally sits static, not earning any interest at all. For true optimizers, that may be enough of a draw. 
• FDIC/NCUA coverage: It’s a good idea to double-check before opening an account, but the money stored in a high-yield checking account is generally eligible for the same Federal Deposit Insurance Corporation (🎃FDIC) protection offered at most banks (or National Credit Union Association (NCUA) coverage, at credit unions).
• Online account management: Most high-yield checking accounts are available to open online, and indeed—banks and credit unions generally try to push you in that direction anyway, since it’s usually cheaper for them too. 
• May not have minimum balance requirements: Unlike many 澳洲幸运5官方开奖结果体🍷彩网:ch😼ecking accounts offered by big banks, high-yield accounts at smaller institutions may not come with monthly fees or minimum balance requirements to waive them. Some do, however, so ensure you fully understand the fine print before opening an account.

High-Yield Checking Account Cons

• Lots of monthly requirements: The biggest hassle of a high-yield checking account is tracking your progress toward meeting the requirements each month, such as having a certain number of direct deposits and/or debit card transactions. If you use your account frequently enough, it may not be an issue, but it may be a more time-consuming task for some people. 
• Need to store cash in a checking account: Even if it offers a stellar rate, a checking account may not be where you store most of your cash. You may need to choose between keeping less money in your checking account, which may limit your earning potential, or reorganizing your 澳洲幸运5官方开奖结果体彩网:budgeting strategy if you typically use one or more savings accounts.
• Opportunity costs: If you move all your money to a bank offering a high-yield checking account but fail to meet the interest rate requirements for any given month, you could be losing out on benefits you actually would get 澳洲幸运5官方开奖结果体彩网:at other banks. 
• Typically offered by smaller institutions: The big banks don’t generally offer high-yield checking accounts, which can be a problem if you travel a lot and rely on being able to walk into any branch around the country.
• May require credit union membership: Many of the best high-yield checking accounts are available through credit unions, which 澳洲幸运5官方开奖结果体彩网:limit who can join. You may need to live in a certain area, for example, but other membership hurdles are relatively small, like making a small donation to a partner charity.

Alternatives to High-Yield Checking Accounts

There aren’t many options for earning more interest on your everyday spending money. You can mix and match accounts, however, or use other types of fin𒆙ancial tools to maximize how much you can earn.

• Certificates of deposit (CDs): CDs, also known as “share certificates” at credit unions, often offer the highest interest rates of all account types at depository institutions, with one big catch: You can’t access your money until the end of the term (months or years) without paying a penalty fee.
• Money market accounts: A hybrid blend of a checking and savings account, some 澳洲幸运5官方开奖结果体彩网:money market accounts offer a high rate while allowing you to make a limited number of purchases each month via check or debit card.
• High-yield savings accounts: Very high rates are more common with savings accounts than checking accounts, but you can’t use them for everyday transactions like swiping your debit card or writing checks. Still, 澳洲幸运5官方开奖结果体彩网:high-yield savings accounts are worth exploring if you’re wondering where to stash your extra cash.
• Rewards credit cards: If you’re willing and able to manage debt, you can earn a good amount of cash back or points on every purchase with certain rewards credit cards. Pay off your balance in full each month to avoid interest and reap the full value of rewards.

Frequently Asked Questions (FAQs)

The Bottom Line

Choosing to open a new 澳洲幸运5官方开奖结果体彩网:high-yield checking account is a bigger decision than opening a high-yield savings account because you’ll be required to⛎ interact with it more frequently—if you want it to pay off, that is. You can’t put it in set-it-and-forget-it mode, or you won’t get any benefit. Make sure you understand the benefits and requirements to earn the high interest rate before you open a new account.

If you don’t want to manage accounts across multiple institutions, take the time to evaluate the bank as a whole and consider moving all of your accountsꦗ there. It could be easier to manage the requirement🥂s of your high-interest checking account if all of your accounts are at the same bank.