It may sound too good to be true, but a handful of bank accounts currently make it possible to earn 6.00% or more—while enjoying all the conveniences of a checking account. That's more than the nation's best high-yield savings account, and as much as the top-paying 1-year CD.
There is, of course, a trade-off. To earn such an astonishing rate on a checking account, you have to jump through some transactional hoops, such as using a debit card many times a month. But if you choose an account whose requirements won't be too difficult to meet within your financial lifestyle, you can significantly boost what you earn in bank interest every month.
Key Takeaways
- High-yield checking accounts pay an ultra-high interest rate in months when you successfully meet a set of transactional requirements.
- A handful of top-paying high-yield checking accounts are offering 6.00% and up, including as much as 7.50% in select markets.
- The most common requirement is to make a minimum number of debit card purchases each month.
- Most high-yield checking accounts cap the balance that can earn the high APY, with typical maximums ranging from $5,000 to $25,000.
- High-yield savings accounts and CDs offer alternative ways to earn a high APY without having to closely monitor whether you're meeting monthly requirements.
How High-Yield Checking Accounts Work
High-yield checking accounts operate on a simple agreement: The bank or credit union establishes a list of monthly account requirements, and whenever you meet those requirements, you're rewarded with a handsome annual percentage yield (APY) on your balance for that month. For this reason, these high-yield products are sometimes called rewards checking accounts.
The most commonly required hoop is using the account's debit card some minimum number of times each month. And we're not talking about three or four transactions. Typically, high-yield checking accounts require you to use your debit card 10, 12, or even 15 times each month, while some accounts stipulate that a minimum dollar amount must be spent on debit.
Other common requirements include requiring direct deposit, sometimes with a minimum dollar amount specified; having an ACH credit or debit post to your account; and signing up for electronic statements. Some also require logging into your online banking account a minimum number of times each month, while others allow you to meet requirements with a credit card issued by that institution.
What to Watch for When Choosing an Account
Besides noting an account's list of monthly requirements, you'll also want to find out the maximum balance that can earn the high APY. Almost every high-yield checking account paying a competitive interest rate will specify how much of your balance is eligible for that advertised rate. For instance, it may indicate that the APY applies just to the first $5,000 of your balance. Though sometimes the thresholds can go as high as $30,000 or $40,000, it's more common to see maximums of $10,000, $15,000, or $25,000.
For this reason, it's best to keep your balance in this account at or below the maximum, as any portion of your balance in excess of the maximum will typically earn either nothing or some very minimal rate. This dilutes what you earn on your full balance, so the best way to maximize your return is by staying under the maximum and moving surplus funds to another high-yield account, such as a savings account.
It's also important to realize how much of an impact missing a month of requirements can be. Yes, you can earn 6% month in and month out, so long as you meet the requirements every month. But if you miss a month or more, your effective APY for the year goes down considerably, as you can see in the graph below. So be sure you choose an account you confidently expect you can succeed with every month.
These 6% Checking Accounts Are Available Nationwide
The following high-yield checking accounts pay at least 6.00% APY when monthly requirements are met, and they are available to anyone nationwide. All are offered by institutions that are federally insured (by the FDIC for banks or the NCUA for credit unions), meaning your deposits up to $250,000 are protected in the unlikely case the institution fails.
Pelican State Credit Union - 6.05% APY on balances up to $10,000. Monthly requirements include: 15 qualifying debit transactions; at least one direct deposit, online bill payment, or automatic payment (ACH); agreement to receive electronic statements; and enrollment in online banking. Anyone can qualify to join Pelican State by making a $5 donation to one of the credit union's affiliated nonprofits.
Credit Union of New Jersey - 6.00% APY on balances up to $25,000. Monthly requirements include: 12 qualifying debit card transactions; at least one direct deposit, ACH credit, ACH payment, or bill pay transaction; and agreement to receive electronic statements. Anyone is eligible to join the credit union by making a $5 donation to the Credit Union of New Jersey Foundation.
Fitness Bank - 6.00% APY on balances up to $25,000. Monthly requirements include: maintaining an average of 10,000 steps per day using the FitnessBank Step Tracker app; making 15 qualifying debit transactions; and opening the account with a minimum deposit of $100.
Orion Federal Credit Union - 6.00% APY on balances up to $10,000. Monthly requirements include: spending at least $500 on your Orion debit or credit card, and receiving electronic deposits totaling at least $500. Anyone can join the credit union.
What Is Kasasa?
You may notice that many high-yield checking accounts are called "Kasasa Cash" accounts. The word Kasasa is simply the brand name for a company that provides packaged banking products to community banks and credit unions, enabling these smaller institutions to provide attractive accounts and features to their customers.
Earn Even More in These Lucky Places
Texas Bank - 6.17% APY on balances up to $25,000, available to all Texas residents. Monthly requirements include: 12 qualifying debit transactions; at least one direct deposit or direct debit; and agreement to receive electronic statements.
ELGA Credit Union - 6.17% APY on balances up to $15,000, available to anyone who lives, works, or goes to school in Michigan. Monthly requirements include: 15 qualifying debit transactions; at least one ACH or direct deposit; and agreement to receive electronic statements.
Collins Community Credit Union - 6.05% APY on balances up to $15,000, available to those living in select areas of Iowa or Illinois. Monthly requirements include: 15 qualifying debit transactions; at least one direct deposit of $100 or more; at least one login to online banking; and agreement to receive electronic statements.
Union Square Credit Union - 6.01% APY on balances up to $35,000, available to residents of certain Oklahoma and Texas counties. Monthly requirements include: 12 qualifying debit transactions; at least one direct deposit, ACH credit, or ACH payment transaction; enrollment in online banking; and agreement to receive electronic statements.
These Options Pay a High APY Without the Hoops
If you don't think you'll be able to keep on top of the requirements for a high-yield checking account every month—or simply don't want the bother of thinking about these hoops every statement cycle—there are easier ways to earn a high return on your cash savings.
High-yield savings accounts are one of the simplest options. Though the best high-yield savings accounts don't pay as high as 6.00% APY, you gain the low-maintenance advantage of not needing to pay any attention to your account except when you want to deposit or withdraw funds.
Similarly, money market accounts offer you a low-stress way to just keep your money socked away—and earning a high rate if you choose from one of the best money market accounts. One advantage you gain with a money market account over a savings account is the ability to write paper checks.
Lastly, today's certificates of deposit (CDs) are paying record rates, and you can earn as much as 5.76% with the top choice in our ranking of the best CD rates. Though it's true you can't touch the money for the length of the CD term you choose (without facing an early withdrawal penalty), you gain the ability to truly "set it and forget it," letting your CD balance simply accrue interest with no transactions needed.
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.
