Best Checking Account Interest Rates
April 2024
When interest rates are down, borrowing is cheap. But it’s difficult to find accounts that offer high interest rates and low fees. However, you can still find excellent options for interest-earning checking accounts. We’ve pulled together a list of the best checking account interest rates available.
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Most checking accounts either don't pay interest or have low APYs between 0% and 0.25%. You can find higher yield checking accounts exist still, but it’s also important to pay attention to fees. For example, some require that you maintain a minimum balance to avoid a monthly fee on the account. If you won’t be able to maintain that balance, you could lose the accumulated interest to monthly fees.
Some banks offer APYs above 4.00%. The options we listed below include some great APYs as well as the pros and cons of each account. We looked beyond the interest rate and APY to factor in all fees and interest-earning criteria.
Best Checking Account Rates
Most checking accounts are designed to pay for expenses and do not pay interest on your balance, unlike savings or money market accounts. However, there checking accounts that provide competitive interest rates. The list above shows some of the best interest-bearing checking accounts.
APY tiers explained
Some checking accounts have an APY tier system. There are two types of tier APY tier systems.
- Capped checking accounts pay higher interest rate up to certain amount, called the cap. Once you go beyond the capped amount, the interest rate drops. For example: 4.09% on the first $10,000, and 0.20% on anything above.
- Minimum balance checking accounts charge a low (or no) interest rate unless your balance is higher than a set amount. For example, accounts with less than $10,000 may not get interest, but accounts with higher balances will get:
- 0.10% for $10,000 to $25,000.
- 0.20% for $25,000 to $50,000.
- 0.30% for more than $50,000.
Banking during COVID-19
Many banks have made adjustments due to COVID-19. Some closed their brick and mortar branches for the time being. Others temporarily reduced their hours. The good news is that most banks are set up to open new accounts and handle your banking needs online.
Other factors to consider when comparing checking accounts rates
A high APY isn’t the only factor to consider when choosing the best checking account for your needs. Other considerations include:
- Maintenance fees. Many checking accounts don't require a maintenance fee. Others will waive the fee if you maintain a certain balance or include a direct deposit. If you aren’t able to waive the fee, then a higher APY may not pay off for you.
- Online banking tools. Some banks are more tech-savvy than others. If a high functioning app and good online banking tools are important to you, make sure your bank keeps up with technology.
- ATM fees. If you need to use an ATM, fees can build up. No matter how high the checking interest rate, you'll lose money instead of gaining. If ATM usage is important for you, look for a bank that offers no ATM fees.
- Overdraft protection. Overdraft fees are usually high. Even with a checking account offering a high APY, pay attention to options for overdraft protection. Is there a cap on how much they’ll charge per day? Can you connect a savings account to protect yourself from fees if you overdraw your account.
- Customer service. You'll need a bank close by if you prefer to handle your banking in person. If you bank online, check out the bank’s website features. If you choose an online-only account, can you access a representative if needed?
Frequently Asked Questions
Which bank has the highest interest rate for checking accounts?
The list above offers some of the best options for higher rate checking accounts right now. You’ll notice that we include other relevant information too. The bank may expect you to maintain a higher monthly balance, for example. Or a minimum monthly direct deposit. The highest interest rate also varies by state.
What is the best bank to open a checking and savings account for interest rates?
The best bank for interest-bearing accounts will vary for each person. Your location and financial situation are necessary factors to consider. The list above is a great place to start. You can enter your state and review the outlined criteria for each account.
What bank has no monthly fees and pays interest?
Interest-bearing accounts with no monthly fee will vary by location. Keep in mind that some accounts come with a monthly fee that's waivable.
What is a good APY for a checking account?
Currently, APYs in our list of the best checking account rates range from 0.3% to 4.5%. However, the best APY for you will depend on your balance and how you use your checking account. Some accounts will only pay a high interest rate if you have a minimum balance or if you meet other requirements, such as making a certain amount of transactions or setting a direct deposit.
What bank has the best interest rates on checking accounts?
It depends who is asking. APYs in our list of the best checking account rates go as high as 4.5%. However, APYs vary based on your location and circumstances. For example, some accounts offer tiered interest rates. Others require an initial deposit or minimum balance. Also, some banks only operate in specific states. Check the list above to find the checking account with the best interest rates for you.
Are high yield checking accounts worth it?
Yes, many times they are. You should not overlook other factors, though. What fees come with the account? If you depend on online banking, is the bank up to speed on the latest technology? Do you need to maintain a certain balance to earn interest? Or, if you will carry a high balance, is there a cap on the higher interest rate?
Each customer's needs are specific, and interest and APY rates vary by location. With the help of our well-researched list, you can find the best checking account to protect and grow your money.
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