Why You Might Want to Open a Combined Checking-and-Savings Account

In the past few years there have been some interesting innovations in online bank accounts that are blurring the lines between traditional "checking accounts" and "savings accounts." This is good news for bank customers!

After all, why should your checking account pay zero interest? Why should your savings account cash be hard to access if you need to use it to pay bills? You work hard for your money, and you deserve to earn interest on every dollar and use it anytime for any goals you choose.

A few banks and brokerages are now offering hybrid bank accounts that combine checking and savings features -- such as high APYs and online bill pay. Other accounts, like money market accounts, can also provide this kind of combination of higher interest and easier access to your cash, but they usually have monthly withdrawal limits.

Let's look at a few types of bank accounts that combine the best capabilities of checking and savings in one place.

1. Wealthfront Cash Account

The Wealthfront Cash Account is one of our picks for best checking accounts, and it offers some great features. You get a high yield on your cash, with no minimum balances, no tiered limits, and no fees. As of April 24, 2024, the Wealthfront Cash Account was paying 5.00% APY.

But this is not "just" a great savings account. The Wealthfront Cash Account can also be used for paying bills, sending checks, receiving your paycheck via direct deposit, depositing checks via mobile app, and more. And you get FDIC insurance of up to $8 million through Wealthfront's partner banks.

In fact, you could use the Wealthfront Cash Account for all of your everyday banking and bill pay. The Wealthfront ATM network is a bit more limited than some major banks -- "only" 19,000 ATMs -- and you don't get an actual checkbook for writing paper checks. But unless those limitations are a dealbreaker for you, this innovative checking-and-savings account could be a great place to keep your extra cash and handle your everyday banking.

2. SoFi Checking and Savings

SoFi Checking and Savings is another intriguing hybrid bank account offered by an online platform. With SoFi Checking and Savings, you put your savings and your everyday spending money in one combined account, but with separate buckets that pay different APYs. As of April 24, 2024, SoFi checking account balances earn 0.50% APY, and savings account balances earn up to 4.60% APY with qualifying deposit activity.

With SoFi Checking and Savings, there are no account fees, and you get access to more than 55,000 fee-free ATMs. You can get additional FDIC insurance of up to $2 million through SoFi's network of banks. And SoFi is offering a new account bonus -- as of April 24, 2024, and until June 30, 2024, you can get up to $300 when you open a new SoFi Checking and Savings account with qualifying deposits (terms apply).

3. Money market accounts

Want another option to combine high-yield savings with some checking account features? Try a money market account. The best money market accounts (as of April 24, 2024) are paying 5.00% APY or higher, and many of them also give you options to access your cash like a checking account, such as a debit card or check-writing capabilities.

A money market account probably isn't the best fit for your everyday banking and paying bills. These accounts typically have limits on the number of withdrawals you can make each month. But if you want the convenience of being able to write a check or pay occasional bills from your cash savings while still earning the highest possible yield, a good money market account can give you the best of both worlds.

Bottom line

The banking industry is moving toward a world where it's possible for bank customers to earn high yields on every dollar of their cash, while also conveniently paying bills and managing everyday spending. The Wealthfront Cash Account is one of the best examples of how you can get checking features and high yields on your cash savings, all in one place. SoFi Checking and Savings accounts also offer strong yields and convenience. Or if you don't need a full suite of checking account features, the best money market accounts can deliver high yields and some easier access to your cash.