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- Axos Bank Rewards Checking Account Review
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The Axos Bank Rewards Checking Account grabs your attention quickly with its high APY and unlimited ATM fee reimbursements, which you can qualify for with frequent debit card use and a high enough average balance. But the checking account isn't just a one-trick pony. In our Axos Bank Rewards Checking Account review, we’ll dive into the pros and cons of this account’s features and highlight why it's a top pick.
Rates as
of Feb. 15, 2021
| Offer | Our Score | APY | Best For | Next Steps |
|---|---|---|---|---|
Axos Bank Rewards Checking
Member, FDIC
|
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
APY: Up to 1.25% | Best For: High APY and ATMs |
Full Axos Bank Rewards Checking Account Review
Top Perks
Earn up to 1.25% APY: The Axos Bank Rewards Checking Account's APY makes it one of the most lucrative checking accounts available today. Interest-bearing checking accounts are still relatively rare and those that exist usually have APYs that fall far short of those of savings accounts. You may earn interest on balances up to $150,000. Balances greater than this will not earn interest.
You can qualify for the highest APY if meeting the following criteria:
- Monthly direct deposits totaling $1,000 or more
- Use your Axos Bank debit card for 15 transactions per month (minimum $3 per transaction).
Unlimited domestic ATM fee reimbursements: Axos Bank doesn't have a network of fee-free ATMs, but this shouldn't concern you because it does offer unlimited domestic ATM fee reimbursements. Few banks do this and it's a nice option if you don't want to worry about finding a fee-free ATM near you. You should note that your ATM may still charge you a fee that could temporarily reduce your balance until Axos Bank reimburses you for it. You could also get slapped with ATM fees if you take your Axos Bank debit card abroad, so plan accordingly.
No minimum balance requirements: You need at least $50 to open your Axos Bank Rewards Checking Account, but after it's open, it doesn't matter how much you keep there. You're still eligible to earn interest on your purchases and you don't have to worry about monthly maintenance fees if your balance drops too low.
Unlimited free mobile deposits: Axos Bank doesn't charge you fees for mobile deposits or restrict how many mobile deposits you can make in a month. This is ideal for people who still get paid with physical checks and don't want to run to a branch location or incur extra fees for doing what's most convenient.
FDIC insured: Finally, Axos Bank accounts are covered by the same FDIC insurance as traditional bank accounts. This covers you for up to $250,000 per depositor, per institution, in the event of a bank failure.
What could be improved
Not everyone will qualify for the highest APY: The Axos Bank Rewards Checking Account employs a tiered system where the highest APY is only available when meeting the deposits and transactions monthly requirements.
Fees
| Fees | Monthly Maintenance | ATM Withdrawal | Overdraft | Stop Payment | Insufficient Funds |
|---|---|---|---|---|---|
| Axos Bank Rewards Checking Account | $0 | $0 after Axos Bank reimbursement | $0 | $10 if you make your request online, or $35 if you require assistance from an Axos Bank representative | $0 for items generating a negative balance of less than $25, otherwise $25 per item with a maximum $75 per day |
How to access your money
Axos Bank gives you several ways to access your funds. Here's a closer look at how to deposit and withdraw money from your Rewards Checking Account.
Deposit options
You can deposit money into your Axos Bank Rewards Checking Account in any of the following ways:
- ACH transfer
- Mobile check deposit
- Wire transfer
- Mailed checks
You'll need $50 to open your account and Axos Bank will prompt you to fund your Rewards Checking Account in one of these ways when you sign up. Axos Bank does not charge fees for incoming wire transfers, but the bank you're transferring the money from may charge you an outgoing wire transfer fee if you're funding your account in this way. Use one of the other methods if you don't want to worry about running into extra costs.
Withdrawal options
You can withdraw money from your Axos Bank Rewards Checking account in any of these ways:
- ACH transfer
- Wire transfer
- Requesting a mailed check
- ATM withdrawal
- Point-of-sale cash withdrawal
Note that with any method other than an ATM withdrawal, it could take a little while to receive your funds. Plan accordingly by withdrawing the money in advance to avoid running into problems.
Online checking account comparison
If the Axos Bank Rewards Checking Account doesn't appeal to you, check out the Bank5 Connect High-Interest Checking Account instead. Its competitive APY isn't nearly as high as that of the Axos Bank Rewards Checking Account, but it makes earning interest a lot simpler. As long as you have at least $100 in your account, you're earning interest. There's no need to worry about tiered systems or making a certain number of transactions per month. It's really simple.
The Discover Cash Back Debit Account is a solid alternative, especially if you want to earn rewards for debit purchases -- customers receive 1% cash back on up to $3,000 of purchases each month.
Rates as of Feb. 15, 2021
This checking account is right for you if:
The Axos Bank Rewards Checking Account is a great option for those who deposit more than $1,000 to their account every month and use their debit cards frequently. Its APY bests most savings accounts, and even those who don't qualify for this rate can still earn an APY that's far above average. The account's unlimited ATM fee reimbursements also make it a good fit for those who don't want to go out of their way to get their cash for free.
The account's main drawback is that its tiered interest model disadvantages those with small balances and those who rarely use their debit cards. If either of these apply to you, there are better checking accounts out there that offer a high interest rate with fewer strings.
About the Author
Kailey has been writing about banks, credit cards, loans, and all things personal finance since 2012. She also writes for The Ascent's parent company, The Motley Fool. Her work has appeared on USA Today, CNN Money, Fox Business, and MSN Money. She's a graduate of the University of Wisconsin and happily lives in the woods of northern Wisconsin where she grew up.
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