Best High-Interest Checking Accounts for April 2024—Up to 6.25%

These checking options pay more than some savings accounts

Fact checked by Betsy PetrickReviewed by Anthony Battle

Holding enough money in a checking account to cover your bills and then stashing any surplus cash in a savings account is the traditional model for boosting the bank interest you can earn. But for those willing to regularly use a debit card, significantly higher earnings are available from high-interest checking accounts.

Best High-Yield Checking Accounts

• La Capitol Federal Credit Union – 6.25% APY
• Pelican State Credit Union – 6.05% APY
• Credit Union of New Jersey – 6.00% APY
• Fitness Bank – 6.00% APY
• Orion Federal Credit Union – 6.00% APY
• Garden Savings Federal Credit Union – 5.12% APY
• Presidential Bank – 4.62% APY
• Consumers Credit Union – 5.00% APY
• Signature Federal Credit Union – 4.00% APY

These accounts, sometimes called rewards checking, offer a trade-off: If you meet a handful of requirements in any given statement cycle, the bank or credit union will pay you an interest rate for that month that is well beyond what even the best savings accounts offer.

The catch is that you need to follow all of the requirements to the letter, and if you miss even one, you’ll be paid little or no interest for that month.

Still, the requirements aren’t difficult for many consumers, and the payoff can be quite lucrative. Indeed, our ranking of the best high-interest checking accounts that are available nationwide all pay at least 4.00%, with the top-paying account reaching as high as a 6.25% annual percentage yield (APY). Compare that to high-yield savings accounts, where the best are paying better than 5.50% APY right now, while the national average rate is only 0.46% for savings accounts and 0.07% for checking accounts.

In the News

In the News: The Federal Reserve raised interest rates numerous times throughout 2022 and 2023 to cool high inflation. For its last four meetings, however, the Fed has held the federal funds rate steady, and signaled on Jan. 31 that the committee’s rate-hike cycle has almost certainly ended. While most Fed members expect two to four rate decreases will occur in 2024, the Fed has cautioned that it could be some time before the first cut is implemented.

Interest rate hikes can directly impact the rate you receive on your high-yield checking account. Additionally, they can impact your savings account rate. It’s wise to see if the bank you’re using for your checking account offers a high-yield savings account. You could also see if it offers one of the best CD rates right now. Combined, these accounts could help you earn the maximum amount of money on the cash you keep at your financial institution.

Note that all of the high-interest checking accounts listed below require signing up for electronic statements, and most also stipulate that you enroll in online or mobile banking. Additionally, credit unions are significant players in the high-interest checking account arena, populating the majority of our ranking slots. But don’t let the name or location of a credit union fool you into thinking you can’t bank with them. Many credit unions—and all of the ones we’ve included in our rankings here—offer a pathway for anyone in the country to join, usually for a modest fee or donation.

Below you’ll find the top checking account rates available from our partners, followed by our complete ranking of the best checking account rates nationwide.

La Capitol Federal Credit Union, Choice Checking – 6.25% APY

With its limited balance threshold, it’s best for customers who keep relatively minimal funds on hand.

• Maximum balance for top APY: 6.25% APY on up to $10,000. Balances above $10,000 earn 0.72% APY.
• Debit card transactions required per month: 15.
• Direct deposit required? No.
• ACH required? No.
• Bill payments required? No.
• APY if qualifications not met: 0.10% APY on full balance for that month.
• ATM fee reimbursement: Up to $25 per month.
• Monthly maintenance fee: If you meet the monthly debit transaction requirement, keep your average daily balance above $1,000 for the month, or are under 24 years old there is no fee. Otherwise, an $8 low balance fee will apply.
• Paper statement fee: For any months not enrolled in e-statements, $2 will be assessed, but the fee is waived for those under 17 and those over 60.
• Minimum opening deposit: $50

Pelican State Credit Union – 6.05% APY

Pelican’s requirements are relatively easy to meet for those who regularly use a checking account.

• Maximum balance for top APY: 6.05% APY on balances up to $20,000 and 0.50% APY on portion of balance greater than $20,000
• Debit card transactions required per month: 15
• Direct deposit required? One direct deposit, online bill payment, or automatic payment (ACH)
• ACH required? One direct deposit, online bill payment, or automatic payment (ACH)
• Bill payments required? One direct deposit, online bill payment, or automatic payment (ACH)
• Other requirements: Electronic statements, enroll and login to MyPelican online banking
• APY if qualifications not met: 0.05%
• ATM fee reimbursement: Unlimited nationwide (ATM receipt must be presented for reimbursement of ATM fees of $5 or higher within 30 days after the statement cycle where the reimbursement was applicable in order to receive a refund.)
• Monthly maintenance fee: None
• Minimum opening deposit: $25

Credit Union of New Jersey – 6.00% APY

For those who like to keep more than $10,000 in a checking account, Credit Union of New Jersey boasts the top rate.

• Maximum balance for top APY: 6.00% APY on balances up to $25,000 and 0.75% APY on portion of balance greater than $25,000
• Debit card transactions required per month: 12
• Direct deposit required? At least one direct deposit, ACH credit, ACH payment, or bill pay transaction
• ACH required? At least one direct deposit, ACH credit, ACH payment, or bill pay transaction
• Bill payments required? At least one direct deposit, ACH credit, ACH payment, or bill pay transaction
• Other requirements: Electronic statements
• APY if qualifications not met: 0.01%
• ATM fee reimbursement: Up to $25 nationwide per statement period, up to $4.99 international per statement period
• Monthly maintenance fee: None
• Minimum opening deposit: $5

Fitness Bank – 6.00% APY

Fitness-oriented banking customers willing to connect their daily activities to an app can earn a great rate at Fitness Bank.

• Maximum balance for top APY: 6.00% APY on balances up to $25,000 and 0.25% APY on portion of balance greater than $25,000
• Debit card transactions required per month: 15
• Direct deposit required? No
• ACH required? No
• Bill payments required? No
• Other requirements: Average 10,000 steps per day using the FitnessBank Step Tracker app (7,500 if 65+)
• APY if qualifications not met: 0.10% APY
• ATM fee reimbursement: Up to $10 per statement period
• Monthly maintenance fee: None with $10 minimum average daily balance, otherwise $10/month
• Minimum opening deposit: $100

Orion Federal Credit Union – 6.00% APY

Orion Federal Credit Union’s requirements to earn its top rate are among easiest to meet.

• Maximum balance for top APY: 6.00% APY on balances up to $10,000 and from 2.34% APY to 5.06% APY on portions of balance greater than $10,000, depending on specific balance
• Debit card transactions required per month: Spend at least $500/month on your Orion debit or credit card
• Direct deposit required? $500 monthly minimum
• ACH required? No
• Bill payments required? No
• Other requirements: No
• APY if qualifications not met: 0.01% APY
• ATM fee reimbursement: Up to $10 per statement period
• Monthly maintenance fee: None when requirements to earn top APY are met, otherwise $5/month
• Minimum opening deposit: No stated minimum

Garden Savings Federal Credit Union, Platinum Rate Rewards Checking – 5.12% APY

Direct deposit not a great option for you? Garden Savings offers one of the best APYs and a generous maximum earning balance while allowing you to qualify without establishing a direct deposit.

• Maximum balance for top APY: 5.12% APY up to $15,000. Balances above that pay 0.15% APY.
• Debit card transactions required per month: 12.
• Direct deposit required? One direct deposit OR one ACH deposit
• ACH required? See direct deposit above.
• Bill payments required? No.
• Other requirements: Must be enrolled in e-statements.
• APY if qualifications not met: 0.01% APY
• ATM fee reimbursement: Up to $20 in fees refunded if monthly qualifications met.
• Monthly maintenance fee: None.
• Minimum opening deposit: None

Presidential Bank, Advantage Checking – 4.62% APY

Although this isn’t the highest APY on the list, the high yield is extended to a much higher balance than with other accounts. It’s also the only top-paying checking account that doesn’t absolutely require debit card transactions, offering other electronic withdrawals as alternate qualifiers.

• Maximum balance for top APY: 4.62% APY up to $25,000, and 3.62% APY on balances beyond $25,000.
• Debit card transactions required per month: Seven or more electronic withdrawals per month, which can be by ATM, debit card, ACH, or bill pay.
• Direct deposit required? Yes, at least $500 per month.
• ACH required? See debit card requirement above.
• Bill payments required? See debit card requirement above.
• Limitations: Write up to three paper checks per month at no charge, but incur a $3 charge per check thereafter.
• APY if qualifications not met: 0.10% APY.
• ATM fee reimbursement: Up to $8 in refunded fees per month.
• Monthly maintenance fee: $5, waived with a $500 minimum balance.
• Minimum opening deposit: $500.

Consumers Credit Union, Rewards Checking – 4.00% APY

This is the best high-APY nationwide checking account that we’ve found. But earning the top rate requires opening and actively using a credit card from the credit union.

• Maximum balance for top APY: Up to 5.00% on up to $10,000. Balances between $10,000.01 and $25,000 earn 0.20% APY, and balances in excess of $25,000 earn as high as 0.10% APY.
• Debit card transactions required per month: 12.
• Direct deposit required? One direct deposit, ACH deposit, or mobile deposit of $500+ per month
• ACH required? See direct deposit above.
• Bill payments required? No.
• Other requirements: Holding a Consumers CU Visa card and spending $1,000 on it per month. If credit card spending is at least $500 but doesn’t hit $1,000, APY on the account will be 4.00% APY. If you don’t have the credit card, but meet all the other requirements you get 3.00% APY.
• APY if qualifications not met: 0.01% APY on full balance for that month.
• ATM fee reimbursement: Unlimited refunds in months where qualifications are met.
• Monthly maintenance fee: None.
• Minimum opening deposit: $5

Signature Federal Credit Union, High-Yield Checking Account – 4.00% APY

For those with a reliable direct deposit of $1,000 or more each month, Signature offers a generous maximum balance, one of the easiest debit card requirements, and a minimal cost to join.

• Maximum balance for top APY: 4.00% APY up to $40,000, then 0.00% APY
• Debit card transactions required per month: 15
• Direct deposit required? Yes, at least $1,000 per month
• ACH required? No
• Bill payments required? No
• Other requirements: Must enroll in e-statements
• ATM fee reimbursement: $10 per month, plus access to free ATMs through the CO-OP and Culiance networks
• Minimum opening deposit: None stated

You May Be Able to Earn Even More

As with all banking products, it can pay to shop locally. Our rankings focus on banks and credit unions open to customers nationwide, allowing for accounts to be opened online. But with credit unions being strong players in the rewards checking realm, it’s possible that a credit union in your community or state, or that serves your employer, may pay as much or more than the best nationwide options we’ve laid out. Or perhaps you’ll find one with slightly easier requirements.

The nationwide leaders above will be hard to beat in most markets. But it’s always worth checking the local and regional options available specifically to you before locking into a choice.

What Is Kasasa?

If you do only a little research on rewards checking accounts, you’ll notice the word Kasasa popping up from time to time, and the odd word may leave you scratching your head.

That’s because Kasasa is a fabricated branding word and the name of a company that offers checking account infrastructure to banks and credit unions. What all Kasasa accounts have in common is that they offer some sort of reward, whether exceptional interest rates, cash back on debit card purchases, or more unconventional perks, and they carry no fees.

Tips for Succeeding With High-Yield Checking

By now, you understand you have to actively earn your reward with a high-interest checking account. For most people, these are not accounts you can leave on autopilot and expect to receive the maximum interest payment each month. A little bit of due diligence—both upfront and monthly—is required if you want to maximize your earnings.

Be Sure You Thoroughly Understand the Requirements

As you research options, be sure you fully understand what each account will require of you. Thinking through how you normally use a checking account and what behavior modifications you’re willing to make (if any) will help lead you to the best rewards checking account for your needs and style.

Then, once you’ve chosen an account, make the time investment of a phone call to a customer service representative at the bank or credit union to ask questions about the specific rules of qualifying transactions. One of the most important things to clarify is what types of debit card transactions will qualify toward the minimum number. Do they have to involve a signature? Can they be PIN-based? Do they have to be at least some minimum dollar amount?

Don’t stop at debit questions, though; familiarize yourself with any requirements about direct deposit or ACH transactions. Also, learn where to review the monthly qualification calendar, which will indicate the first and last days for posted transactions to count towards each monthly rewards cycle.

Set Some Monthly Reminders

Now that you know your marching orders for earning top dollar on your checking account balance every month, turn that information into some automated tasks that will help ensure you don’t forget. Being deprived of a whole month of interest due to a single misstep can be frustrating.

Adding a reminder to your phone or calendar for the same day every month, perhaps seven to ten days before the closing date for qualifying transactions, is a best practice that can help you complete any necessary actions while you still have time.

Important

The date a transaction will count towards your monthly qualification requirements is the posted date, not the actual activity date. Since it can take a day or two for pending transactions to post, be sure to initiate any needed activity a few days before the end of your qualification period.

Watch Out for Account Maximums

If your account has a maximum that you may sometimes bump up against, regularly pay attention to your balance. If you go a few dollars over and it’s expected to be a temporary surplus, don’t sweat it. But since the interest rate many of these accounts pay on the portion of your balance that exceeds the high-APY threshold is zero, or close to it, you won’t want to regularly keep more than the maximum in your account.

To see how much difference this can make, take the example of an account with a $10,000 maximum for earning 3.00%. At amounts above $10,000, the account pays just 0.10% APY. If you were to keep a balance of about $20,000 in the account regularly, you’d essentially be lowering your APY on that account to just 1.55% APY (the average of 3.00 plus 0.10).

Pair Your High-Yield Checking With High-Yield Savings

For those who find they’re being constrained by the maximum balance threshold on their high-yield checking account, a savvy move is to pair it with a high-yield savings account. The savings account can be at the same institution or an entirely different one. You can find our ranking of the top-paying national savings accounts here.

The key is simply to create an electronic link between your two high-yield accounts so that you can easily transfer surplus funds that exceed your checking account’s maximum allowance into a savings account that may pay 10x as much as the surplus funds would earn in checking. Conversely, if your checking account balance falls below the high-APY threshold, you can transfer funds from savings back to checking to maximize your high-yield earnings.

Pros and Cons of High-Yield Checking Accounts

Pros

• Offer a higher interest rate than traditional checking accounts 

• Give you easy access to your cash 

• May come with bonus perks and benefits 

Cons

• May require a certain balance to earn the highest rate 

• Could have rules around minimum balances or transactions per month

• Rate could decrease over time

Pros Explained

• Offer a higher interest rate than traditional checking accounts: While traditional checking accounts offer an average of 0.07% APY, according to the Federal Deposit Insurance Corporation (FDIC), some high-yield checking accounts may offer APYs close to or beyond 5.00%.
• Give you easy access to your cash: Like other checking accounts, high-yield checking accounts are designed for high activity and generally come with a debit card. You can use these accounts to withdraw cash and pay your bills as needed. 
• May come with bonus perks and benefits: Some high-yield checking accounts come with additional perks, such as a cash-back debit card, reimbursement for out-of-network ATM fees, and zero monthly maintenance fees. 

Cons Explained

• May require a certain balance to earn the highest rate: Each institution sets its own rules, but some may require you to have a certain amount of cash in your checking account to access the best rates. 
• Could have rules around minimum balances or transactions per month: Along similar lines, some high-interest checking accounts may require you to maintain a minimum balance or conduct a certain number of transactions per month to earn a certain APY, avoid fees, or keep the account open. 
• Rate could decrease over time: Your checking account rate is not fixed and may fluctuate with market conditions. Over time, you may see your rate decrease and your interest earnings go down as a result. Browse the best CD rates for accounts with a guaranteed return at a specific APY.

Alternatives to High-Yield Checking Accounts

A high-yield checking account may not be the best fit for everyone. Here are some alternative options to explore. 

• Traditional checking account: Although they don’t earn much or any interest, traditional checking accounts may have other perks that appeal to you, such as no fees, ATM fee reimbursement, or early direct deposit. Browse the best free checking accounts to see if one would work for you.
• High-yield savings account: You can often find higher APYs on savings accounts than checking accounts. A savings account is a great place to store cash that you don’t need for everyday spending or monthly bills. See the best high-yield savings accounts to find a good home for your money.
• Certificate of deposit (CD): You might also invest in a CD to earn interest on your money over time. CDs may be a good fit if you don’t need immediate access to your cash, since you could rack up fees if you withdraw your money before the CD’s maturity date. 
• Money market account: These accounts are like a combination of checking and savings accounts—they often come with checks and a debit card while offering a fairly high rate. The downside of money market accounts, though, is they may charge higher fees or have higher minimum balance requirements. See the best money market accounts to explore your options.
• I Bonds: I bonds are U.S. government bonds that can help protect your savings against inflation. You can’t access your cash until at least a year has passed, though. 

Frequently Asked Questions

What Is a High-Yield Checking Account?

A high-yield checking account is a type of checking account that earns higher-than-average interest. According to the FDIC, the average checking account interest rate is only 0.07% as of Feb. 20, 2024. High-yield checking accounts may earn rates up to 6.00% or higher.

Are High-Yield Checking Accounts Worth It?

A high-yield checking account may be worth it if earning interest on your checking account balance is a priority. If you only keep a small amount of cash in your checking account, a high-yield savings account may be a higher priority. 

When determining whether a high-yield checking account is worth it, keep an eye out for any rules or restrictions that wouldn’t be a good fit for your spending habits, such as account or transaction minimums.

Which Banks Pay the Highest Interest on Checking Accounts?

Some financial institutions that often pay among the highest interest rates on checking accounts include Pelican State Credit Union and Fitness Bank, with rates of 6.05% APY and 6.00% APY respectively.

Do High-Yield Checking Accounts Exist?

Yes, high-yield checking accounts exist at various banks and online financial services companies. Compare the options above from multiple institutions to find the best APY on a high-interest checking account. 

What Is a High-Yield Investor Checking Account?

A high-yield investor checking account is a checking account that’s linked to a brokerage account and usually has a higher-than-average interest rate. You can find investor checking accounts from brokerages like Charles Schwab. A brokerage checking account may make it easier to invest your money, but you may be able to find a higher checking account or savings account APY from a bank. 

Methodology

To choose the best high-yield checking accounts, we scanned online resources for banks and credit unions that offered checking accounts with the highest annual percentage yields (APYs). Institutions had to be federally insured (by FDIC for banks and NCUA for credit unions); the maximum allowable balance that could earn the high rate had to be at least $10,000; and the number of required debit card transactions could not exceed 15.

Read the original article on Investopedia.