Best High-Yield Checking Accounts

A high-yield checking account offers a high annual percentage yield (APY), like a savings account combined with the convenient access of a standard checking account. We have researched the banking industry to find our picks of the best high-yield checking accounts using our methodology below.

A high-yield checking account offers a higher APY than a standard checking account. High-yield checking accounts typically require a higher minimum balance, certain transaction volume, direct deposit, and other requirements to qualify for the higher rates. They offer a similar APY to a savings account but are designed for everyday use.

Some banks and credit unions call a high-yield checking account a rewards or high-interest checking account. A rewards checking account is a standard checking account that offers rewards such as high APY, cash back on debit card purchases, or sign-on bonuses for new customers.

Both types of accounts offer higher APYs, but a savings account typically has transaction limits. Savings accounts tend to have higher interest rates. Another difference between checking and savings accounts is that savings accounts don't have debit/ATM cards or checks.

While a checking account is for daily use and for spending money, savings accounts are for saving and growing money. Many savings accounts do not have a minimum balance requirement to earn the high APY; Checking accounts often do. Checking accounts are used for regular transactions, paying bills, and ATM withdrawals.

In exchange for the high APY and rewards, many high-yield checking accounts charge a monthly fee or require a minimum deposit, high minimum balance, or have other requirements. The fee may outweigh the rewards or the minimum requirements may be difficult to meet. It is important to check to see if it is worth signing up for a high-yield checking account. Here are other factors to consider.

High APY, cash back rewards, or other additional perks

When looking for the best high-yield checking account, look at the rate and rewards offered. Is the APY large enough that makes it worth it to open the account? If the rate difference is minimal, then it may make sense to stick with a standard account that has no requirements.

Are the requirements easy to meet? Do you use direct deposit? Some banks and credit unions require you to open a credit card with the bank as well. Check to see how much you keep in your checking account on average and the number of transactions you make. Then compare it to the minimum requirements.

Fees and minimum requirements

There are many other checking account fees that a bank or a credit union can charge. These fees can eat into any gain in high interest. Some banks also require a high minimum balance to qualify for the account. Customers who don't meet the minimum requirements will often have to pay the monthly service fee.

Customer service

It is important to find a bank that offers easily accessible customer service. Online-only banks do not have any branches so the only way to contact the bank is through online chat, email, or phone support. If you still prefer face-to-face customer service, you may want a bank with a physical branch.

Nationwide availability (Physical locations or mobile access)

You should choose a bank based on your preference and what is important to you. Some large banks have branches nationwide. Online banks don't have physical branches but they tend to have lower fees and offer a higher APY. Check to see if their online banking and mobile apps are robust and meet your needs.

ATM network or generous ATM fee reimbursement program

Some banks have a limited number of fee-free ATMs. If you use an out-of-network ATM, you will be charged a fee. Look for banks with a large number of fee-free ATMs or banks that offer generous ATM fee reimbursements.

Typically, you should keep your emergency savings (three to six months' worth of expenses) in your savings account since it offers more interest. Your checking account is for everyday use, so based on your monthly budget, you should have enough cash to pay your bills so you don't have to worry about an overdraft. You should also keep enough money in your checking account to avoid fees and to qualify for a high-yield checking account.

Because interest rates are so low and inflation is currently at an all-time high, you are actually losing money if you keep too much cash in your checking and savings accounts. You will want to put additional cash in accounts where you can earn higher returns.

A high-yield checking account may be worth it if you can easily meet the minimum requirements. This account is best if you keep high balances of cash in your account and want to conduct everyday transactions. Standard checking accounts offer very little interest, so a high-yield checking account can help you earn more money while having easy access to your money.

While the best high-yield checking accounts generally offer higher earning potential, they require a high minimum balance, a minimum number of transactions, and they may charge higher fees. If it is difficult to meet the requirements, it may make sense to use a high-yield savings account to get a high APY and use a standard checking account for everyday transactions. In today's low interest environment, a high-yield account will beat a regular checking account, but it isn't right for everyone.

Keep browsing our checking account top picks

Our checking account methodology

At The Motley Fool Ascent, we rate checking accounts on a five-star scale (1 = poor, 5 = best). We evaluate all checking accounts across four main criteria: brand and reputation, APY and rewards, fees and minimum requirements, and perks.

Our scores are weighted as:

• Brand and reputation: 30%
• APY and rewards: 30%
• Fees and minimums: 15%
• Other perks: 15%

Our aim is to maintain a balanced list featuring top-scoring products from reputable brands offering standout features. Learn more about how The Motley Fool Ascent rates bank accounts.

Banks we monitor

Here are the financial institutions we've evaluated in our research:

Alliant, Ally, All America Bank, American First Credit Union, American Express® National Bank, Arvest Bank, Aspiration, Axos Bank, B2 Bank, Bank of America, Bank5 Connect, Bank7, Barclays, Bask Bank, Betterment, Bluevine, BMO, Bread Financial, Capital One, Carver Federal Savings Bank, Charles Schwab Bank, Chase, Chime, CIT, Citibank, Citizens Bank, Citizens Savings Bank, Columbia Bank, Connexus Credit Union, Consumers Credit Union, Copper, Cross River Bank, Customers Bank, Discover® Bank, E*TRADEEdward Jones, EverBank, Fidelity, Fifth Third Bank, First Foundation Bank, First Internet Bank of Indiana, First National Bank, First Tech Federal Credit Union, Flushing Bank, Freedom Bank, Generations Bank, GN Bank, Golden 1 Credit Union, Greenlight, Harborstone Credit Union, HSBC, Huntington Bank, Ivella, Kabbage by American Express, KeyBank, Laurel Road, LendingClub, Liberty Bank, Liberty Federal Credit Union, Marcus by Goldman Sachs, Mercury, Municipal Credit Union, Mutual of Omaha, NASA Federal Credit Union, Nationwide Bank, Navy Federal Credit Union, NBKC Bank, New York Community Bank, Northpointe Bank, Novo, OceanFirst Bank, Old National Bank, ONE Finance, OneUnited Bank, Oxygen, Pacific Western Bank, PNC Bank, Ponce Bank, Popular Direct, Presidential Bank, Prime Alliance Bank, Quontic, Radius, Raisin, Redneck Bank, Regions Bank, Relay, Republic Bank of Chicago, Revolut, Salem Five Bank, Sallie Mae, Santander Bank, SchoolsFirst Federal Credit Union, Simple, SoFi, Synchrony Bank, Tab Bank, TD Bank, Third Federal, Truist Bank, U.S. Bank, UFB, Upgrade, USAA, Valley Bank, Vanguard, Varo Bank, Vio Bank, Wealthfront, Wells Fargo, Western Alliance Bank, and Zeta.