Earning interest from a checking account might seem like a wise money move, but Bankrate financial analyst Stephen Kates urges caution. “Checking accounts that advertise appealing yields often throw decidedly unappealing hurdles in accountholders’ paths,” he warns. Bottom Line Personal asked Kates what consumers need to know about high-interest checking accounts…
Key Benefits of High-Yield Checking Accounts
What are the upsides of a high-yield checking account? The primary benefit is right there in the name, but some high-yield checking accounts offer additional advantages…
Higher interest rate (APY)
The vast majority of checking accounts pay either no interest or interest rates so laughably low that their payouts are measured in pennies. “High-yield” checking accounts don’t offer truly high yields, but some have annual percentage yields (APYs) upward of 1%, and some even reach 2% to 3% or, very occasionally, even more.
Low or no monthly fees
Checking accounts that pay interest sometimes impose monthly service fees, but it is possible to find interest-paying no-fee checking accounts. That’s critical, because any monthly fee likely would largely offset the interest the account earns.
ATM-fee reimbursements
Online banks and obscure credit unions often offer the highest-yielding checking accounts. But they usually lack extensive ATM networks, which makes it especially important that they reimburse accountholders for fees they incur for using other banks’ ATMs.
Other perks: Some high-yield checking accounts provide cash-back rewards for debit card purchases.
Typical Requirements to Qualify for High Yields
With most types of financial accounts, it’s easy to earn the advertised yield—deposit money into the account, and interest accrues automatically. “Earning the advertised yield from a high-yield checking account is significantly trickier,” warns Kates. Accountholders generally must leap through multiple hoops each month to earn this interest. Among the potential high-yield checking account requirements…
Minimum number of debit card transactions
Accountholders often must make a specified number of debit card purchases every month—potentially 10 or 12—to receive that month’s interest.
Direct deposit or ACH activity
Money might have to enter the account via direct deposit or some other form of automated clearing house (ACH) transaction each month for the account to earn interest. And these deposits might have to exceed a designated amount, potentially $500 or $1,000.
Enrollment in eStatements
Accountholders often must agree to receive monthly statements online rather than in the mail.
Multiple accounts
Some high-yield checking accounts require accountholders to open and maintain additional banking, investment or loan accounts with the financial institution to receive the advertised interest rate.
Minimums and maximums
Accountholders might be required to maintain a minimum balance to earn interest and/or avoid fees. Related: The advertised interest rate typically applies up to a cap, potentially $5,000 or $10,000.
High-Yield Checking vs. Savings Accounts
Checking accounts with yields above 1% are rare, but savings accounts with yields of 2% to 4% are relatively easy to find in 2026—and unlike high-yield checking accounts, many of these savings accounts don’t require accountholders to fulfill challenging requirements each month to earn this interest.
Bankrate’s Top-Rated High-Yield Savings Accounts
- EverBank Performance Savings (recent APY: 3.9%). Everbank.com
- Marcus by Goldman Sachs (recent APY: 3.65%). Marcus.com
- CapitalOne 360 Performance Savings (recent APY: 3.2%). CapitalOne.com
- American Express High Yield Savings Account (recent APY: 3.2%). AmericanExpress.com
But a savings account doesn’t do everything a checking account does—savings accounts often don’t provide debit/ATM cards, checks or automated bill payment, for example. But if earning a reasonable yield from bank accounts is a priority, Kates believes that the best option is combining a high-yield savings account with a low-fee checking account. His strategy…
- Open a savings account that offers an attractive yield and hassle-free rules.
- Also open a no-fee checking account at the same institution, even if this checking account pays no interest.
- Link these accounts so money can be easily transferred between the two as needed.
- Keep most of your money in the savings account.
- Use the bank’s app to receive alerts whenever the checking account balance gets low, so you can transfer money promptly and avoid overdrafts. (Some banks even will transfer money automatically between accounts as needed without charging overdraft fees.)
The hassles will be lower than with a high-yield checking account, and the interest earned often will be higher. “You can get better rates in savings accounts,” says Kates, “and you can link those to your checking account pretty seamlessly.”
How to Choose the Best High-Yield Checking Account
Confirm that the financial upside of a high-yield checking account justifies its hassles. Example: If an account pays 2% on up to $10,000 in deposits, that means the maximum you could earn each year is $200. “Is that enough for you?” asks Kates. “For me, the effort is not worth it.”
Choose an account that matches your banking habits. If you decide a high-yield checking account is worth the effort, don’t simply pick the account that advertises the highest yield. That account might impose fees that erode the interest income and/or set onerous requirements. Example: If you already use your debit card more than 10 times per month and expect to continue doing so, then opening an account to requires you to use your debit card that many times shouldn’t cause problems. Confirm that the account has an ATM network or ATM-fee reimbursement policy that meets your needs, too.
Bankrate’s High-Yield Checking Account Top Picks
Axos Rewards Checking, which offers an APY of up to 3.3%—but accountholders must open additional Axos accounts to earn that full 3.3%, among other requirements. AxosBank.com
Lake Michigan Credit Union Max Checking, which offers an APY of up to 4% if several requirements are met. LMCU.org
