High-yield Checking Accounts (Earn up to 5.30% APY)

High-yield Checking Accounts (Earn up to 5.30% APY)

High-Yield Checking Accounts: A Comprehensive Guide

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Are you tired of your regular checking account that offers little to no interest on your balance? If so, it’s time to explore the world of high-yield checking accounts. These accounts offer the opportunity to earn a higher interest rate on your balance while providing additional perks like fee refunds and extra benefits.

The World of High-Yield Checking Accounts

With high-yield checking accounts, the higher your account balance, the higher interest rate you’ll earn. Beyond just the interest rate, the best checking accounts are light on fees and offer extra perks such as refunded ATM fees.

In the world of high-yield checking accounts, some interesting options stand out. Silicon Valley Bank, Signature Bank, and First Republic Bank, for instance, have recently been shut down. Nevertheless, it’s important to note that your money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.

Best High-Yield Checking Accounts

Now, let’s take a closer look at some of the best high-yield checking accounts available. These top picks are protected by FDIC or NCUA insurance, ensuring the safety of your funds.

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1. Redneck Bank Rewards Checkin’ Account

• Why it stands out: Redneck Bank offers a competitive bonus interest rate if you frequently use your debit card. You can also get refunded up to $25 per month in out-of-network ATM fees if you qualify for the bonus interest rate.
• How interest works: Earn 5.30% APY on account balances up to $15,000 by making 10 qualifying debit card transactions per monthly statement cycle and receiving online bank statements.
• What to look out for: Redneck Bank requires a steep minimum opening deposit of $500 for the Rewards Checking Account.

2. June Metal Checking Account

• Why it stands out: The June Metal Checking Account offers a high interest rate and cash back rewards. It’s also a great choice for immigrants, requiring only a Social Security number and passport to qualify.
• How interest works: You can earn up to 5.00% APY on balances up to $50,000, depending on your balance tier.
• What to look out for: The June Metal Checking Account requires a qualifying direct deposit of $250 or more per month.

3. Consumers Credit Union Free Rewards Checking Account

• Why it stands out: The Consumers Credit Union Free Rewards Checking Account offers one of the highest interest rates available. The credit union also refunds any fees charged by out-of-network ATM providers.
• How interest works: Earn between 3.00% and 5.00% APY on balances up to $10,000 by meeting specific requirements such as eDocuments, debit card purchases, and direct deposits.
• What to look out for: You need a Consumers Credit Union credit card to earn the maximum APY.

4. Wealthfront Cash Account

• Why it stands out: The Wealthfront Cash Account allows you to earn a high interest rate on your entire balance without charging any monthly service fees.
• How interest works: All you need to do is open an account with at least $1 to earn 4.80% APY on your entire balance.
• What to look out for: Wealthfront only offers the Cash Account, limiting your options for other types of accounts.

5. SoFi Checking and Savings

• Why it stands out: SoFi Checking and Savings offers a competitive interest rate and avoids common fees like monthly service fees, overdraft fees, and out-of-network ATM fees.
• How interest works: You can earn up to 4.40% APY on savings balances and 0.50% APY on checking balances with direct deposit.
• What to look out for: SoFi has fewer bank account options compared to traditional financial institutions.

6. Signature Federal Credit Union High-Yield Checking Account

• Why it stands out: Signature Federal Credit Union offers a high interest rate, $0 minimum opening deposit, and no monthly service fee.
• How interest works: Earn 4.00% APY on balances up to $20,000 by meeting monthly requirements such as direct deposit, debit card transactions, and online bank statements.
• What to look out for: You must become a member to open a Signature Federal Credit Union account.

7. First Tech Rewards Checking

• Why it stands out: First Tech Rewards Checking pays a high rate on balances up to $15,000 and has a low minimum opening deposit and no monthly fees.
• How interest works: Earn up to 4.00% APY on balances up to $15,000 by meeting requirements, including transactions with your First Tech debit and/or credit card, minimum direct or ACH deposits, and enrollment in eStatements.
• What to look out for: First Tech FCU compounds interest monthly instead of daily.

Other Accounts That Didn’t Make the Cut

While we highlighted our top picks, there are other high-yield checking accounts worth considering. However, these accounts didn’t make our cut for various reasons:

• evolve Federal Credit Union ePriority Checking Account: Limited availability in specific regions.
• Axos Bank Rewards Checking: Rates are not as competitive as our top picks.
• Fidelity Cash Management Account: So-so interest rate.
• Wings Financial Credit Union High-Yield Checking Account: Rates are better with our top picks.
• And many more…

Trustworthiness of the Institutions

It’s natural to wonder about the trustworthiness of these institutions. To assess their reliability, we turn to the Better Business Bureau (BBB). While Redneck Bank and Signature Federal Credit Union don’t have BBB ratings yet, the other top picks have the following ratings:

• Juno: F rating due to unresolved complaints.
• Wealthfront: F rating due to unanswered complaints.

Remember, a good BBB grade doesn’t guarantee a perfect relationship with the bank. It’s always wise to gather perspectives from other customers and reviews before making a decision.

Why You Should Trust Us

Our expert panel consists of banking and financial planning experts who have provided valuable insights and advice on choosing the best high-yield checking accounts. Let’s hear from them:

• Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”: Emphasizes factors like ATM branch locations, minimum balance amounts, and additional features like free checks and online bill pay.
• Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider: Highlights the importance of no monthly service fees, customer support availability, and mobile app ratings.
• Tania Brown, certified financial planner at SaverLife: Recommends considering the purpose of the account, such as interest, cash rewards, or specific usage like travel.
• Mykail James, MBA, certified financial education instructor, BoujieBudgets.com: Emphasizes the importance of knowing the provider of the debit card and its acceptance at various locations.

Methodology: How We Chose the Best High-Yield Checking Accounts

Our selection process considered accounts with the highest interest rates on the entire balance or up to a high balance. We also evaluated factors such as monthly service fees, out-of-network fee reimbursement, and minimum opening deposits.

Credit unions often offer the highest rates, so we focused on credit unions with easy eligibility requirements. However, remember that local or more selective credit unions may offer even better rates.

If you’re looking for a checking account that offers more than just keeping your money safe, these high-yield options are definitely worth considering. With higher interest rates and additional perks, they can help you maximize your money and achieve your financial goals.

• High-yield checking account
• Personal Finance Insider
• PFI Guide