Best High-Yield Checking Accounts Of April 2024

We’ve compared 157 checking accounts at 66 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of April 2, 2024.

• Average High-Yield Checking Account Rates
• What Is a High-Yield Checking Account?
• Why Choose a High-Yield Checking Account?
• Pros and Cons of a High-Yield Checking Account
• How To Choose a High-Yield Checking Account
• How Do I Apply for a High-Interest Checking Account?
• How To Make the Most of a High-Interest Checking Account
• High-Yield Checking Account vs. High-Yield Savings Account
• Are Interest-Bearing Checking Accounts Worth It?
• Alternatives to High-Yield Checking Accounts
• Methodology
• Banks We Monitor
• Frequently Asked Questions (FAQs)

According to the latest FDIC data, the average APY on interest-bearing checking accounts is 0.08% as of April 15, 2024. A checking account has to earn more than that amount to be considered high interest. Many of the checking accounts on our list have APYs between 3.00% and 5.00%, with some earning over 5.00%.

When Will Rates Go Up?

Though it’s impossible to predict when the interest rates on checking accounts will rise, the federal funds rate is one indicator to keep an eye on.

The Federal Open Market Committee (FOMC) meets eight times a year to set the target federal funds rate. When the Fed rate increases, banks and credit unions tend to raise rates on deposit accounts, such as checking, savings and money market accounts. Interest rates have been on the rise since last year, but the FOMC is now holding rates steady and predicts they will decline in 2024.

How To Find the Best Interest Rate on Checking Accounts

To find the best interest rate on a checking account, consider online banks and credit unions as you shop around, as they tend to offer higher rates than traditional brick-and-mortar banks. When comparing checking accounts, look to minimize fees, too, as they can eat into any interest you earn.

Some banks have requirements you must meet to earn the highest APY, such as maintaining a minimum balance or receiving a certain amount of money via direct deposits each month. If you can’t meet these requirements consistently, you might opt for a checking account that offers the same APY on all balances.

High-yield checking accounts are checking accounts that offer higher interest rates than standard checking accounts. Some high-yield checking accounts pay the same APY on all balances, while others offer a tiered interest rate that increases with higher balances. You may also have to meet certain requirements to access the advertised rate, such as making a certain number of transactions each month, receiving direct deposits or enrolling in electronic statements.

How Does a High-Yield Checking Account Work?

A high-yield checking account functions like a regular checking account, providing a safe place to keep your money and allowing you to make purchases with a debit card, check or electronic transfer. A high-yield checking account is meant to be used as an everyday spending account, but it offers an interest rate that can help you grow any money that remains after your expenses are paid.

If you regularly use a checking account and maintain a significant balance, a high-yield checking account can help you earn a little passive income. Many high-yield checking accounts have criteria you need to meet to earn the highest interest rate, such as a minimum balance you need to maintain or a direct deposit activity condition. But if you’re already meeting these requirements, you can earn some extra cash with no additional effort.

On the other hand, if you can’t meet an account’s requirements to earn the best APY or avoid fees, it may not be worth opening a high-yield checking account. Aside from earning a higher interest rate, a high-yield checking account is no different from a traditional checking account.

There are several benefits to opening a high-yield checking account, but there are a few drawbacks to consider too.

Pros

• High APYs. Earn competitive interest on your checking account balance.
• Flexibility. Spend money, pay bills, deposit checks and withdraw cash without worrying about transaction limits.
• Security. FDIC or NCUA insurance protects your balance and interest earnings.

Cons

• Balance or activity requirements. High-yield checking accounts may have requirements for earning interest, such as balance minimums or direct deposit activity requirements.
• Earning limits. Many high-yield checking accounts place limits on the amount of interest you can earn or the maximum balance that can qualify for interest.
• Lower rates than other accounts. High-yield checking account rates are often lower than those available with high-yield savings accounts, money market accounts and CDs.

High-yield checking accounts are not just about the APY. It’s important to weigh all of the potential benefits and drawbacks of any account before deciding so that you can make the best overall choice—rather than just going for the highest APY. Here are several aspects of a high-yield checking account to consider:

• Activity requirements. The majority of high-yield checking accounts have a number of hoops to jump through to qualify for the highest rate. Make sure these requirements fit with your normal checking account activity, or you risk either missing out on the interest if you can’t meet them. Or, you might find yourself overspending and signing up for unnecessary additional accounts to earn that interest.
• Fees and minimum balance requirements. Though all five of the accounts on our list feature no monthly maintenance fee or minimum balance requirement, many high-yield checking accounts have one or both. And don’t forget to factor in overdraft or non-sufficient fund (NSF) fees, as well as out-of-network ATM fees, and the like. Make sure whatever interest you’ll earn from your account doesn’t get eaten up by fees.
• Digital experience. It’s now expected that your bank will have an excellent mobile app to allow you to handle your finances at home and on the go. But even though this is a baseline expectation in 2023, it’s still smart to check out the digital experience, by looking at both the bank’s website and its mobile app’s ratings on the App Store and Google Play.
• Safety. In addition to double-checking that the bank uses good online security measures, like two-factor authentication and fraud detection, make sure that any bank you choose is Federal Deposit Insurance Corporation (FDIC) insured, which means each account holder’s deposits are protected by the government for up to $250,000 per depositor, for each account ownership category, in the event of bank failure. For credit unions, look for accounts insured by the National Credit Union Administration (NCUA).

Opening a high-yield checking account is just like opening any other checking account. Here are the steps you generally must follow to open a high-yield checking account.

1. Shop around. Before applying to a high-yield checking account, you’ll need to choose where to open the account. You might end up picking a major national bank, a regional or local bank, a local credit union or an online bank. Among the specifics you should consider are an account’s interest rate and fees.
2. Provide identification. Once you’ve chosen where to open an account, the financial institution will need to verify your identity if you’re applying in person or online. You generally can verify your identity with a driver’s license, Social Security card, state-issued ID, passport or birth certificate. You might be required to offer more than one form of ID.
3. Verify your address. The financial institution also will need proof of your address. You may be asked to come up with a copy of your apartment lease or a mortgage statement, utility bill or bank statement.
4. Make an initial deposit. Some financial institutions require a minimum opening deposit of, say, $50 or $100. Other banks don’t require an opening deposit.
5. Submit an application. In most cases, a financial institution will ask you to fill out an application, either online or in person. Once you’ve turned in the application, the financial institution might review your banking history and credit history before approving your application.

To get the most benefit from a high-yield checking account, look for one that charges low or no fees and offers a high interest rate. If the fees are high and the interest rate is low, then any interest you earn can be erased.

Other things you should consider to make the most of a high-yield checking account are:

• Debit card. Does the account offer one? Is it free?
• ATM access. How many ATMs would you be able to use? Is it free to use these ATMs, or will you be charged transaction fees? Are any of these fees reimbursed?
• Customer service. Does the financial institution have physical locations where you can get assistance with your account? Or does it offer 24/7 customer service by phone, chat or email?
• Balance requirements. Some financial institutions require you to keep a minimum amount of money in your account, usually to avoid monthly account maintenance fees. Others, however, don’t impose balance requirements.
• Online experience. Is the financial institution’s website easy to navigate? Does it offer a free, simple-to-use app? Does the account come with a bill-paying feature?

A high-yield checking account is simply a regular checking account with a higher interest rate. The same goes for high-yield savings accounts—they are savings accounts with above-average rates. High-yield checking accounts are used for everyday financial transactions, while high-yield savings accounts are meant for stashing money you won’t need to access regularly, such as an emergency savings fund, a down payment for a house or money set aside for other goals.

Checking accounts make it easier to access your money by providing you with an ATM card and checks, whereas most savings accounts don’t offer these features. Checking accounts also have no withdrawal limits, but savings accounts may limit you to six withdrawals per statement cycle. Generally, the best high-yield savings accounts offer better rates than high-yield checking accounts.

If you want the benefits of a checking account (such as debit cards and ATM access) while growing your money, an interest-bearing checking account may be worth it. As long as you’re not paying monthly service fees, high-yield checking accounts can give you a small financial boost at no cost. If your primary goal is to build savings, though, you may earn a higher interest rate with a savings account—just be aware you may not be able to access your money as easily as you would with a checking account.

Depending on your financial goals, a high-yield checking account may not always be the best place for your cash. Consider these alternatives instead of—or in addition to—a high-yield checking account.

• Traditional checking account. If you don’t keep much of a balance in your checking account—or you don’t meet the minimum requirements to qualify for a high-yield checking account’s high rate—choose a traditional checking account. Opt for one with low fees and features you’ll use, like free ATM access or checks.
• High-yield savings account. A high-yield savings account doesn’t serve the same purpose as a high-yield checking account. But if you have money you’d like to set aside for later, you can likely get a better bang for your buck with a savings account. Funnel some of your extra cash from checking to savings to earn more interest.
• Money market account. A money market account (MMA) blends features of both savings and checking accounts. MMAs typically earn higher interest than savings accounts but offer an ATM card, debit card or paper checks like a checking account. However, MMAs can be subject to transaction limits, so they aren’t a perfect substitute for a checking account.
• Cash management account. Cash management accounts (CMAs) are similar to money market accounts, but they also include the ability to invest. CMAs provide all the checking and savings account features you need—such as a checkbook, a debit card, bill pay capabilities and FDIC insurance—plus, your CMA balance earns interest. In exchange for all these perks, CMAs often have high minimum balance requirements.

The accounts on this list have relatively high APYs for checking accounts.

To create a list of the best high-yield checking accounts, Forbes Advisor analyzed 157 checking accounts at 66 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 17 data points within the categories of APY, customer experience, digital experience, fees, access and minimum requirements.

The following is the weighting assigned to each category for high-yield checking accounts:

• APY: 50%
• Fees: 15%
• Customer experience: 10%
• Digital experience: 10%
• Minimums: 10%
• Branch and ATM access: 5%

Specific characteristics taken into consideration within each category included APY, customer service ratings, mobile access, online access, mobile app ratings and the national availability of the account. We also considered fees, the ability to waive monthly fees, minimum deposit requirements and minimum balance requirements.

Checking accounts with high ratings from the Better Business Bureau and Trustpilot scored the highest, as did those offering no or very low fees and low minimum requirements. To appear on this list, the checking account must be nationally available.

We monitor rates, fees and other account details from the following banks and credit unions to determine the best high-yield checking accounts: Acorns, Albert, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, Aspiration, Axos Bank, BancorpSouth Bank, Bank of America, Bank5 Connect, BankDirect, BankPurely, Betterment, Blue Federal Credit Union, BMO Harris, Capital One, Charles Schwab Bank, Chase, Chime, CIT Bank, Citibank, Citizens Bank, Connexus Credit Union, Consumers Credit Union, Copper, Dave, Discover, E*Trade Bank, Fidelity, First Internet Bank, First National Bank and Trust, FNBO Direct, GoBank, Golden1 Credit Union, Heritage Bank, HSBC, iGoBanking, Investors eAccess, LendingClub, Memory Bank, My eBanc, Navy Federal Credit Union, nbkc Bank, One, Paramount Bank, PenFed, PNC Bank, Quontic, Redneck Bank, Regions Bank, Rising Bank, SalemFiveDirect, Santander, SoFi, Step, TAB Bank, TD Bank, EverBank, U.S. Bank, Union Bank & Trust, USAA, Varo Bank, Wealthfront and Wells Fargo.

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