Does your bank reward you for your checking account, or are you paying your bank?
Most people have a checking account, but for a lot of us, it’s just a basic place to park our money with a debit card to access it. Many of these accounts also have fees—maintenance fees, transaction fees—you name it. So, we end up paying our bank just to have a place for our money.
But what if your checking account actually paid you? That’s what high yield checking accounts are all about.
What is a high yield checking account?
A high-yield checking account is like a regular checking account but with a big bonus—it earns meaningful interest on your balance. Think of it as a mix between a checking account and a savings account, where you get easy access to your money for daily transactions, but it also works a little harder for you by growing faster.
The rates for a high yield checking account are often as high, or even higher, than high yield savings accounts or CDs. For example, if your checking account has $8000, here’s what you could earn on that amount on an average checking account (if it is interest earning at all) verses a high yield account:
Average checking: 0.01% APY* on $8000 = earns $0.80 yearly
High yield checking: 5.00% APY on $8000 = earns $400 yearly
Where most checking accounts earn you pennies, a high yield checking account can potentially earn you hundreds of dollars in rewards. It’s a great option if you want easy access to your funds but also want your money to work for you with that higher return.
What’s the fine print?
To get the most out of a high yield checking account, you often need to meet certain requirements, like a minimum balance, a certain number of debit transactions each month, or regular direct deposits. If you qualify, the interest rate can be much higher than standard checking accounts, helping your money grow while staying right at your fingertips. However, you should be aware that the APYs on high yield checking accounts are often variable and can change any time.
It’s important to review the account details to make sure you are able to meet the requirements listed. What will your account look like if you don’t meet those requirements?
Tip: The best high-yield checking accounts have easy-to-meet requirements and won’t hit you with extra fees if you don’t meet them every month.
Where can I get a high yield checking account?
A lot of high-yield checking accounts come from online-only banks since they often use higher rates to attract customers. But if you prefer a bank with physical branches, there’s at least one option in Washington that offers both a high yield and the convenience of local branches.
First Fed, with locations in Bellevue and throughout Western Washington, offers a high yield checking account. The Rewards Checking comes with a competitive interest rate and reasonable requirements, giving you a great way to grow your money while keeping it local.
- Rewards Checking offers a 5.00% APY* on balances under $10,000, with 1.00% on additional balances.
As an extra bonus, the Rewards Checking account can be paired with a Rewards Savings account, offering a premium APY on amounts under $50,000. Pairing a high yield checking and savings account together is a great way to grow higher balances while keeping full access to your money.
You can open both the Rewards Checking and the Rewards Savings accounts online, as easily as any regular or digital bank account.
Start Reaping Rewards
With the potential to earn higher interest and still have easy access to your money, it’s a win-win—especially if you already plan to use your account regularly for things like debit purchases or direct deposits. Just be sure to check any monthly requirements so you can maximize the interest rate. If you’re looking to make your money work harder without giving up convenience, a high yield checking account might be just the upgrade you need!
*APY is annual percentage yield. First Fed is a member FDIC and Equal Housing Lender.
