Checking accounts provide security and accessibility to your money. Instead of walking around with all your cash, you can park your money in a checking account and spend that money via a debit card.
In addition to providing safety and accessibility to your money, some checking accounts will provide the account owner with interest. Although the interest on a checking account is not enough to supplement one’s income, there are some accounts that provide a greater interest than others.
How Do High Interest Checking Accounts Work?
High interest checking accounts are an additional benefit some banks provide. The interest rate will certainly not make you rich, but it’s a great added benefit that comes with no increased risk. You’ll be able to access and spend your money the same way you do on a regular checking account, the bank will just provide you with a greater yield each year.
What Makes a Good High Interest Checking Account?
There are a few factors that should be considered when looking for a high interest checking account. These factors include:
The convenience factor cannot be forgotten about. You need to bank with a bank that fits your lifestyle and needs. If you never withdraw or deposit cash, perhaps an online bank is best suited for you.
However, if you prefer to do in person transactions, or withdraw/deposit cash frequently, you should likely consider banking at a brick and mortar bank. If you’re one that travels often, you may want to bank at a large nationwide bank that has locations scattered throughout the country.
Generally speaking, the higher the interest rate, the better! This is free money a bank is giving you. If you keep $10,000 in your account, and the bank provides a 1% interest rate, you’ll receive $100 every year.
Sometimes, the higher the interest rate a bank is willing to provide, the more fees the bank charges. Be sure to read the fine print and fully understand the cost of opening, and maintaining, a checking account with any specific bank or credit union. Overdraft fees, account minimum balance fees, and even fees to withdraw or deposit money all need to be considered.
Best High Interest Bearing Checking Accounts
We’ve done the hard work for you and scanned the market for the best high interest bearing checking accounts.
La Capitol Federal Credit Union Choice Checking
La Capitol came to life nearly 50 years ago, and has been changing the banking world since day one. Today, La Capital offers a great interest rates on their Choice Checking Account, and provides tremendous benefits for their customers.
La Capitol is local to Louisiana, but really leverages an online banking, or co-op banking, business model. If you’re comfortable banking online, definitely consider La Capital.
Without question, La Capital Choice Checking has a great deal of benefits:
- You can earn a dividend up to 4.25% APY
- 24/7 remote banking options
- Access to over 5000 banking co-ops
- ATM fee refunds
If you’re not comfortable banking online, or visiting a dedicated branch for your banking needs, La Capitol will take some adjustments.
Pricing or Fees
The pricing and fees are minimal! In fact, La Capitol even offers no cost banking. There is a $50 minimum deposit to open an account.
All in all, La Capitol provides a fantastic APY rate, above and beyond what you’d receive at a large brick and mortar bank. In addition to the high yield, La Capitol has minimal fees. As a result, we rank it 4.5 out of 5 stars!
INOVA Federal Credit Union Shield Checking
Inova Federal Credit Union is headquartered in Elkhart, Indiana and serves over 30,000 members.
Inova Federal Credit Union has actual branches one can visit if they live within the area, or offers tremendous online and mobile banking options.
Inova Federal Credit Union is gaining popularity, and for good reason. Benefits include:
- A $5 monthly fee for their checking account option
- Access to over 5,600 branches that they have partnered with
- Nearly 30,000 ATMs throughout the country can be used free of charge
- Exceptional customer service
Although they offer branches in their local area, and service centers throughout the country, establishing that local banking feel and relationship at a shared service center may be more challenging.
Pricing or Fees
You can open a shield checking account with a $10 minimum opening deposit. It will cost you $5 per month in service fees.
All in all, Inova Federal Credit Union receives a 4 star rating.
Western Vista Federal Credit Union Panorama Checking
Western Vista Federal Credit Union offers fantastic online banking services and a few in person locations in Wyoming. The Panorama Checking Account is a popular choice.
Considering the minimal in person locations Western Vista offers, their Panorama Checking Account is best for those who don’t mind banking online or via a mobile platform.
Why is the Panorama Checking Account so good? The benefits have the members best interest in mind:
- Members can earn a dividend of 2.53% APY on account balances up to $15,000
- They’ll reimburse $250 a month in ATM fees, limit of $5 per transaction
- You receive immediate access to your debit card when you open an account in one of their branches
- You will have full access to SavvyMoney – which is a robust credit score monitoring program that will help you manage, and improve, your credit score.
The common theme is, there is a lack of brick and mortar footprint. Although there are less in person branches to visit, the company is saving money and using that money to boost their APY.
Pricing or Fees
There are no monthly fees!
All in all, Western Vista Federal Credit Union receives a 4 star rating for their Panorama Checking Account.
Millbury National Bank
Millbury National Bank started in 1825! This bank believes small town financial instructions help shape our country’s success, and anchors to that belief even to this date. They have a small town feel, but a large impact.
You’ll need to be comfortable banking online to bank with Millbury National Bank.
The Personal Cash Back Checking Account has great benefits, including:
- Account owners will receive a 1.76% APY on balances up to $25,000
- There are no monthly maintenance fees
- ATM fees are reimbursed up to $25/month
However, Millbury National Bank’s only location is in Millbury Massachusetts. If you’re not a local, you must rely 100% on online banking.
Pricing or Fees
The pricing and fee structure is minimal. Overdraft fees can be avoided, and ATM fees are reimbursed up to $25/month.
All in all, Millbury National Bank receives a 3.5 star rating.
AXOS Bank is a 100% online bank which is revolutionizing the banking industry.
You must be comfortable with technology, and banking online to open an account with AXOS Bank. With that said, if you’re looking for an account that packs a strong punch, AXOS is a great option.
AXOS Bank’s Rewards Checking Account has many benefits. These benefits include:
- Up to 1.25% APY
- Unlimited ATM fee reimbursements, from any ATM
- No monthly maintenance fees
- There are no overdraft fees
- No monthly balance requirements
- AXOS is a full service bank. You can combine your checking account, mortgage, personal loans, mortgages, and business banking together at AXOS Bank.
The only downside to banking with AXOS is the fact that there are no retail locations to visit. However, AXOS provides excellent phone and live chat customer service.
Pricing or Fees
AXOS does not charge fees for even the most typical/common banking fee. As mentioned in the benefits, customers of AXOS Bank will not pay for a maintenance fee, overdraft fee, or monthly balance requirement fee.
Considering the yield AXOS provides, and the zero fees they have, AXOS Bank, and their Rewards Checking Account option, receives a 4.5 star rating.
Seek Advice and Watch Your Money Grow
A checking account has many benefits. Not only does it provide security to your money, but one can easily access this money and spend it as they please. Earning a higher rate of interest on money, without increasing your risk, is a personal finance dream come true.
With that said, seeking professional advice from a financial advisor is the smartest thing you can do. A good financial advisor will help you manage your risk, diversify your investments, and create additional revenue streams.