Best high-yield checking accounts of November 2023
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BLUEPRINT
Updated 12:08 p.m. UTC Nov. 3, 2023
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News of the death of high-yield checking accounts is premature, especially as the Federal Reserve lifts interest rates to its highest point in 15 years. The benefit of these accounts is straightforward: You can earn more on the money you keep in your checking account, giving you some return on cash that’s just waiting to be used for other goals, like spending or saving.
Be prepared to jump through a few hoops, though, such as setting up direct deposit or using your debit card a certain number of times a month. But if you can gin up a little yield, why not make the effort?
To aid you, we canvassed dozens of data points from more than 300 checking accounts offered by nearly 120 financial institutions to select the best high-yielding checking accounts for you.
Annual percentage yields (APYs) and account details are accurate as of November 3, 2023.
Why trust our banking experts
Our team of experts evaluates hundreds of banking products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 300+ accounts from 120 financial institutions reviewed.
- 4 levels of fact checking.
- Nearly 60 data points analyzed.
Best high yield checking accounts
Axos Bank Rewards Checking
Consumers Credit Union Rewards Checking
Presidential Bank Advantage Checking
Wealthfront Cash Account
Redneck Bank Redneck Rewards Checkin’ Account
Compare the best high-yield checking accounts
Methodology
We looked at over 300 checking accounts offered by more than 100 financial institutions, including Bank of America, Capital One, Chase, Discover and USAA.
We track over 60 data points for each of the institutions. Out of those, we picked five categories to examine and weigh to create a star rating. A perfect score of 100 means the bank would get five stars; a score of 80 would get four stars and so on.
Here’s what we looked at and how we did the math.
APY: 50%. If you’re specifically looking for a high-yield checking account, the yield matters. It matters so much that we counted the APY as worth half of a bank’s entire score.
Fees: 30%. Why earn a yield just to pay it right back to the bank in fees? The existence of fees, especially a monthly service charge, counted against a bank’s score. Overdraft, non-sufficient funds and third-party ATM fees also played into our calculations.
Access: 10%. While digital financial transactions are currently king, cash is still, at least, a prince. The size of a bank’s ATM network is important, along with, to a lesser degree, its branches.
Customer experience: 5%. You can’t always trust everything you read online, but we still look at the reviews and ratings from other experts. To determine how a bank’s customer experience rates, we look at the grades it earns from the Better Business Bureau (BBB), J.D. Power and Trustpilot.
Digital experience: 5%. No one enjoys being stressed out over a wonky app, particularly one that represents and interacts with your finances. We look at the bank’s app ratings on the Apple App Store and Google Play Store, plus we check how its online banking access works and whether it offers online bill pay.
Why some banks didn’t make the cut
Every bank and credit union, and each account they offer, have different advantages and disadvantages. Only the best made our list.
Some of the largest, most well-known financial institutions didn’t make the cut because they don’t offer great rates. Due to their brand name recognition, they don’t need to offer competitive yields to attract consumers — they’re already top of mind for most Americans.
National average for deposit accounts
Here’s data from the Federal Deposit Insurance Corporation (FDIC) on the national average rates for deposit accounts as of October 16, 2023.
What is a high-yield checking account?
All checking accounts are designed to serve as an electronic wallet for your daily financial transactions. Your paycheck goes in for a short while, until you save it or spend it, and then it goes out. In a high-yield checking account, your funds earn a dividend while they’re there.
In this case, “high-yield” is more of a description than a technical definition. A high-yield checking account pays you a dividend, while traditional ones don’t, counting on the idea that their checking account is a valuable-enough service in itself.
There are many checking account variations that are aimed at serving differing needs, including:
- Student checking
- Youth or teen checking
- Senior checking
- Premium checking
- Rewards checking
- Traditional checking
- Second-chance checking
- High-yield checking
There can be some crossovers between the types of accounts as well. For example, a student checking account can also earn a high yield.
Why choose a high-yield checking account
A high-yield checking account combines three advantages in one place.
Yields. In short, money. Having cash that earns cash is a great way to net some passive income. If your paycheck simply existing in your bank account for a few weeks earns you enough of a dividend to cover a coffee, why not?
Liquidity. You don’t have to lock away your funds and commit to a term.
“CDs are restrictive.” Said Sarah Behr, registered investment advisor (RIA) and founder of Simplify Financial Planning in San Francisco. A high-yield checking account allows you to transfer funds in and out any time, whereas CDs lock your funds away for a time and even high-yield savings accounts often have monthly withdrawal limits.
Protection. Depositing your cash in a bank account is one of the safest things you can do. Safer, even, than stuffing it in a hole in your mattress. Your funds are protected by federal agencies, which guarantee you’ll get up to $250,000 of your money back, per depositor, per institution. For example, if you have two accounts at two banks, up to half a million dollars is insured.
What to look for in a high-yield checking account
Here are some elements to consider when researching for your new account.
Famous names (or not-so-famous ones). Large, well-known banks can inspire feelings of trust and brand loyalty. But, they’re often so popular that they’re not motivated to offer the best rates. “The reason smaller ones have higher rates is because they need to get their reserves up,” said Behr.
Yield rates. The bigger the yield, the better, as long as you can meet any qualifications without a sweat. All other things the same, it’s a no-brainer to pick a checking account with a 3% APY over one with a 2% APY. However, if keeping an average balance of $15,000 in one checking account would be ridiculous (as it would be for most people — you’re likely better off moving it to a high-yield savings account), then you’d probably want to pass on an admittedly tempting APY offered by an account with such a high minimum balance requirement.
Fees. Just because an account pays you, doesn’t mean that all of its services are free. There may be a monthly maintenance fee if your balance falls below a set level. Select services, such as wire transfers, may be over or under the national average cost. If your balance is likely to fluctuate greatly or you often use an additional-fee service, research the costs associated with that particular account.
Access. Your checking account should let you access your money in the ways you prefer. Whether you frequent ATMs, value face-to-face banking or need a lightning-fast, intuitive mobile app (or all three), you can search for the financial institution that provides what you want.
Insurance coverage. The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) insure your deposits up to $250,000 at each bank and credit union, respectively, that you use. While you are protected at most financial institutions, not every bank, savings bank or credit union is insured. Traditionally, brokerages aren’t covered, even though they can work with banks and provide coverage through their partnership. Check that whatever institution you choose offers deposit protection.
High-yield bank accounts vs. investment accounts
A high-yield bank account offers a tall APR relative to traditional bank accounts, but making deposits into one is not the same as making investments. You can have both types of accounts to take advantage of their pros and balance out their cons.
High-yield bank accounts
A high-yield checking account is a smart way to earn some money on your income in the short time it remains there, until you divy it up between savings, purchases and investments. A high-yield savings account is the ideal place to keep your rainy-day fund. Compared to investment accounts, both types of high-yield bank accounts offer:
- Typically lower returns. The best high-yield checking accounts are currently offering up to 5.00% APY — which is stellar compared to the national average of 0.07% APY on interest checking accounts. However, stocks are up nearly 10% over the last decade.
- Less risk. Accredited banks and credit unions have your banking deposits automatically insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), respectively. The stock market makes absolutely no promises regarding whether you’ll earn or lose money.
- Greater liquidity. In a high-yield checking account, you can access your money at any time, turning the numbers on the screen into cash in your hand with little effort. Most banks allow you to use a debit card, checks and electronic transfers to manage your funds. You’re not limited to a set amount of monthly withdrawals. In a high-yield savings account, although you may be limited to six withdrawals a month via electronic transfer, this can still be more liquid than investments.
Investment accounts
While you can have a cash account within your investment account, the point of the platform is to enable you to manage your stocks and bonds.
- Higher potential returns. The stock market as a whole has historically offered a double-digit average rate of return. The S&P 500 Index is up 8% annually over the past five years.
- Greater risk. Stocks rise and fall, often unexpectedly. Therefore, you may be in a position to sell at a loss when you need access to cash. Meanwhile, your cash is safe in FDIC-insured banks up to $250,000.
- Less liquidity. It can take one to three business days for you to cash out stocks. For bonds, depending on the bond term you choose, your money could be locked in for years.
How to open a high-yield bank account
It only takes a few minutes to open a bank account. In most cases, you can do so online.
- Pick a financial institution. Do some research — look up the best high-yield checking accounts to see the highest rate for which you can qualify. Consider whether you’d like a big, national bank or whether you’d prefer a small, local credit union.
- Apply for the account. You’ll need to provide personal information including your name, Social Security number, address and date of birth. You’ll need to agree to the terms and conditions. Then, depending on the requirements, you may need to also agree to receive electronic statements.
- Receive approval. In most cases, you’re likely to receive approval immediately. If you have a history of unpaid fees from previous or current checking accounts, however, you may need to fall back on a second-chance banking account.
- Make a deposit. Once you’ve got the greenlight, you can make your first deposit. Some accounts require that you make a minimum initial deposit immediately and maintain it in order for the account to stay open or for you to avoid fees. Almost all banks require that you make a deposit of at least $0.01 within 90 days of opening the account.
Once your account is open, you can link it to any other accounts as your heart desires, including mobile wallets, such as Apple Pay, Venmo and more. Within a week of opening your account, you should receive a debit card and, possibly, checks in the mail.
High-yield account requirements to consider
Here are the typical requirements you’ll need to open a high-yield account.
Positive banking history. Much like your credit report, your banking report is a history of whether you’ve been a good customer. If you consistently run up overdraft fees, non-sufficient fund fees, etc., and don’t pay them, your banking history will reflect this and you may have a hard time opening another bank account, in which case you should look at “second-chance banking.” You can view your report and dispute any inaccuracies at ChexSystems.com.
Government ID number and residential address. Federal agencies, including the FDIC, require banks to have this information for each account holder to help prevent financial crimes like identity theft. Your government-issued identification number could be a Social Security number (SSN), Taxpayer Identification number (TIN), passport number or driver’s license number. Your address must be a residential address, not a P.O. Box.
Potential minimum balance. If your bank requires that you have a minimum balance in your account, you’ll need to pony up the funds before the account is officially open. Most allow you to transfer the funds from another account electronically, so it’s quick and relatively easy. You may be able to fund your new account in person via a debit card or cash.
Tips for managing a high-yield checking account
The term “high-yield checking account” can be misleading, especially for most accounts. The yields you earn are relatively low compared to other accounts.
The main purpose of the account is to be a depot for you cash, so that you can take in income and pay bills. Ideally you can pair one with a high-yield savings account, which will have an even better interest rate.
Some savings accounts have a transaction limit of six withdrawals a month and, given that savings accounts are most effective when you leave your funds in it (so they can earn interest), you likely still want a high-yield checking account.
As a twin pair, the two can help you earn interest on your funds without any sacrifice of liquidity on your part.
A high-yield bank account is just as safe as any other bank account. At insured institutions, each account for each person is protected up to $250,000, which applies in the incredibly rare case that the bank fails.
While some accounts can require a large deposit, not all high-yield bank accounts do. Some don’t have any minimum deposit requirement. Different financial institutions will have different qualifications. Many have multiple types of high-yield accounts with different degrees of qualifications that offer various benefits.
High-yield accounts are best as places to keep cash that you want on hand but that you’re not immediately using. It can be a vital part of your balanced finances and a smart way to keep some of your assets liquid.
Insurance from the Federal Deposit Insurance Corporation (FDIC) protects at least $250,000 of the deposits you make at each insured bank or savings association at which you bank. It covers all types of deposits (savings, checking, money market, certificates of deposit, etc.) and the guarantee is backed by the full faith and credit of the United States government. The National Credit Union Administration (NCUA) provides the same insurance for credit unions.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
