Best High-Yield Checking Accounts of 2023

Best High-Yield Checking Accounts of September 2023

In the ever-evolving world of finance, high-yield checking accounts have proven to be resilient, defying premature reports of their demise. With the Federal Reserve pushing interest rates to their highest point in 15 years, the allure of these accounts remains steadfast. The concept is simple yet powerful: By parking your money in a high-yield checking account, you can maximize returns on the cash idly awaiting allocation to your various financial endeavors, be it spending or saving.

Of course, as with any financial opportunity, there are hoops to jump through. These might involve setting up direct deposits or using your debit card a specific number of times each month. But the prospect of generating a meaningful yield on your money makes these efforts well worthwhile.

To assist you in your quest for high-yield financial security, we have meticulously analyzed data from over 300 checking accounts provided by nearly 120 financial institutions. This comprehensive evaluation has allowed us to identify the best high-yielding checking accounts tailored to your needs.

Understanding the National Average for Deposit Accounts

Daniel Braun

Before we dive into the specifics of high-yield checking accounts, it’s essential to establish a baseline. The Federal Deposit Insurance Corporation (FDIC) offers valuable insights into the national average rates for deposit accounts, providing context for our exploration:

  • Interest checking: 0.07%
  • Savings: 0.40%
  • Money market: 0.59%
  • Three-month CD: 0.62%

Decoding High-Yield Checking Accounts

What exactly is a high-yield checking account? At its core, a checking account serves as an electronic repository for your day-to-day financial transactions. Money flows in—typically your paycheck—and then flows out as you save or spend it. However, high-yield checking accounts distinguish themselves by offering your funds the opportunity to earn dividends while they remain in the account.

The term “high-yield” is more descriptive than a technical definition. Essentially, a high-yield checking account rewards you with dividends, a feature lacking in traditional checking accounts, which rely on the inherent value of their transactional services.

Various checking account variations cater to distinct needs, including:

Student Checking

Senior Checking

Youth or Teen Checking

Premium Checking

Rewards Checking

Traditional Checking

Second-Chance Checking

High-Yield Checking

Notably, some accounts can overlap in functionality. For instance, a student checking account can also offer a high yield, combining the best of both worlds for eligible individuals.

The Benefits of High-Yield Checking Accounts

So, why should you consider a high-yield checking account for your financial portfolio? These accounts offer a trifecta of advantages, consolidating critical elements in one convenient package.

1. Yields: Your Money Working for You

In essence, high-yield checking accounts enable your money to work for you. The concept is simple but effective. If the mere presence of your paycheck in your account for a few weeks can earn you sufficient dividends to cover your daily coffee fix, why not seize the opportunity?

2. Liquidity: Easy Access to Your Funds

Unlike certificates of deposit (CDs), which come with restrictions, high-yield checking accounts offer unparalleled liquidity. You can freely transfer funds in and out at your convenience. Even high-yield savings accounts often impose monthly withdrawal limits, making checking accounts a superior choice for immediate access to your funds.

According to Sarah Behr, a registered investment advisor and founder of Simplify Financial Planning in San Francisco, “CDs are restrictive.” High-yield checking accounts, on the other hand, empower you to manage your finances flexibly.

3. Protection: Your Funds Are Secure

Depositing your hard-earned cash in a bank account ranks among the safest financial decisions you can make. It’s even safer than stashing money under your mattress. Federal agencies ensure the security of your funds, guaranteeing the return of up to $250,000 per depositor, per institution. For instance, if you maintain accounts at two different banks, your half-million-dollar investment remains fully insured.

What to Look for in a High-Yield Checking Account

When you embark on the journey to find the perfect high-yield checking account, it’s essential to consider various elements to ensure it aligns with your financial goals and lifestyle. Here’s a breakdown of what to look for:

1. Bank Reputation: Famous vs. Smaller Banks

You’ll encounter both famous and lesser-known banks in your search. Big, well-established banks may instill a sense of trust and brand loyalty. However, they often offer lower interest rates because of their popularity. On the other hand, smaller banks may provide higher rates to attract customers and build their reserves. It’s a balancing act between trust and yield.

2. Yield Rates: The Higher, the Better

When comparing high-yield checking accounts, the primary consideration is the yield rate, typically measured as an Annual Percentage Yield (APY). In general, the higher the APY, the more interest you earn. However, ensure you can meet the account’s qualifications without much difficulty. For instance, if maintaining a $15,000 balance seems impractical for your financial situation, it’s wiser to opt for an account with a lower APY but more accessible requirements.

3. Fees: Hidden Costs

Don’t be blindsided by fees. Even though an account offers a yield, it doesn’t guarantee that all services are free. Some accounts may impose monthly maintenance fees if your balance falls below a certain threshold. Additionally, specific services like wire transfers might have costs that differ from the national average. If your balance tends to fluctuate or you frequently use additional fee services, research the associated costs thoroughly.

4. Accessibility: Banking on Your Terms

Your high-yield checking account should align with your preferred access methods. Whether you rely on ATMs, prefer face-to-face interactions with bank staff, or demand a user-friendly mobile app, seek a financial institution that caters to your needs. Accessibility ensures you can manage your money conveniently.

5. Insurance Coverage: Protecting Your Deposits

Safety is paramount when choosing a financial institution. The Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA) provide deposit insurance, guaranteeing your deposits up to $250,000 at banks and credit unions, respectively. However, not every institution is insured, so it’s crucial to verify the deposit protection offered by your chosen institution. Traditional brokerages, for example, often lack this coverage, despite their partnerships with banks. Ensure your deposits are safeguarded.

High-Yield Bank Accounts vs. Investment Accounts

It’s essential to distinguish high-yield bank accounts from investment accounts. Despite the fact that both have advantages, their functions are different:

High-Yield Bank Accounts

  • Lower Possible Return: These accounts offer competitive APYs but provide lower potential returns compared to investments.
  • Less Risk: They are a low-risk way to earn some extra income on your deposited funds.
  • Greater Liquidity: You can access your money easily, making it ideal for short-term financial goals.

Investment Accounts

  • Greater Potential Return: Investments offer the potential for higher returns, but they come with greater risk.
  • Greater Risk: Investments are subject to market fluctuations and risks.
  • Lower Liquidity: They may have restrictions on withdrawing funds without penalties.

In essence, high-yield bank accounts are an excellent option for earning money on your short-term income while maintaining liquidity. Conversely, investment accounts provide opportunities for higher returns but involve more significant risks and reduced liquidity.

Unlocking Financial Opportunities: High-Yield Bank Accounts vs. Investment Accounts

In the labyrinth of financial choices, two prominent players vie for your attention: high-yield bank accounts and investment accounts. In this exploration, we’ll decipher their nuances, guiding you toward informed decisions.

Less Risk: High-Yield Bank Accounts

Accredited banks and credit unions extend a financial safety net. Your deposits, up to $250,000, enjoy automatic insurance courtesy of the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). It’s a shield against unforeseen financial turbulence.

The stock market, in stark contrast, holds no such promises. It operates within a realm of unpredictability, where gains and losses dance in perpetual uncertainty.

Greater Liquidity: High-Yield Bank Accounts

High-yield checking accounts usher inconvenience. Your money rests within easy reach, effortlessly transformable from digital numbers to tangible cash. Accessing funds is a breeze, thanks to debit cards, checks, and electronic transfers. You’re not confined by rigid monthly withdrawal limits.

High-yield savings accounts, while restricting electronic withdrawals to six per month, still offer more liquidity than many investments.

Investment Accounts: High Risk, High Reward

Investment accounts are the arena for managing stocks and bonds, promising distinct advantages and challenges.

Higher Potential Returns

The stock market boasts a historical track record of double-digit average returns. Over the past five years, the S&P 500 Index has surged by an annual 8%. It’s a realm where wealth can multiply swiftly.

Greater Risk

Yet, the stock market is a capricious beast. It oscillates unpredictably, subjecting investors to unforeseen fluctuations. Selling stocks at a loss can become a harsh reality when cash is urgently needed. In stark contrast, FDIC-insured banks guarantee the safety of your cash deposits up to $250,000.

Less Liquidity

Liquidity becomes an elusive commodity. Cashing out stocks can take one to three business days. For bonds, your money might remain locked in for years, depending on the bond’s term.

Opening a High-Yield Bank Account

Navigating the realm of high-yield bank accounts is a straightforward endeavor, taking only minutes to embark upon:

1. Pick a Financial Institution

Conduct diligent research to unearth the best high-yield checking accounts offering rates within your eligibility. Contemplate whether a national banking giant or a local credit union aligns with your preferences.

2. Apply for the Account

Furnish personal information, including your name, Social Security number, address, and date of birth. Accept the terms and conditions, and, in some cases, consent to receive electronic statements.

3. Receive Approval

In most scenarios, approval is swift and immediate. However, individuals with a history of unpaid fees from prior checking accounts may consider a second-chance banking account.

4. Make a Deposit

Once granted access, make your initial deposit. Some accounts necessitate an immediate minimum deposit to maintain account status or waive fees. Most institutions require a minimum deposit of at least $0.01 within the first 90 days of opening the account.

As your high-yield account takes shape, you can link it to other accounts, including mobile wallets such as Apple Pay and Venmo. Within a week of initiation, expect to receive your debit card and, possibly, checks by mail.

High-Yield Account Requirements

When venturing into the world of high-yield accounts, be aware of the typical prerequisites:

1. Positive Banking History

Similar to your credit report, your banking history reflects your financial conduct. Chronic overdraft fees or unresolved issues can hinder your ability to open a new bank account. In such cases, explore “second-chance banking” alternatives. Check and dispute inaccuracies in your report at

2. Government ID and Residential Address

Federal regulations mandate that banks gather government ID numbers and residential addresses from account holders to combat financial crimes. Your ID may be a Social Security number (SSN), taxpayer identification number (TIN), passport number, or driver’s license number. Ensure your address is a residential one, not a P.O. Box.

3. Potential Minimum Balance

Accounts with minimum balance requirements necessitate funding to officially activate. Most institutions allow electronic transfers from other accounts, ensuring a quick and straightforward process. Alternatively, you might fund your account in person using a debit card or cash.

Tips for Managing a High-Yield Checking Account

Decoding High-Yield Checking

High-yield checking accounts may sound enticing, but the name can be misleading for most. The yields they offer are relatively modest compared to other financial options. However, these accounts serve a vital role in your financial strategy.

The Account’s Primary Purpose

At its core, a high-yield checking account functions as a repository for your cash flow, facilitating income collection and bill payments. It’s a financial hub designed for convenience and flexibility. Ideally, it pairs seamlessly with a high-yield savings account, offering even better interest rates.

The Limitation of Savings Accounts

While high-yield savings accounts boast competitive interest rates, they often come with a transaction limit, restricting you to six withdrawals per month. Given that savings accounts thrive when funds remain untouched, a high-yield checking account becomes essential to maintain liquidity while earning interest.

The Power of Pairing

When combined, high-yield checking and savings accounts create a dynamic duo. You enjoy the benefits of earning interest on your funds without sacrificing immediate access to your money. This financial synergy ensures your money works for you without limitations.

Methodology: Finding the Ideal Account

Selecting the right high-yield checking account requires careful consideration. We’ve analyzed over 300 checking accounts from more than 100 financial institutions, including renowned names like Bank of America, Capital One, Chase, Discover, and USAA. Our rigorous assessment comprises a multitude of data points, with five key categories influencing our star rating system.

APY: 50%

The Annual Percentage Yield (APY) is a critical factor for high-yield checking accounts. To prioritize your earnings, we assign it a substantial weight, accounting for 50% of the bank’s overall score.

Fees: 30%

Earning a yield shouldn’t be undermined by excessive fees. We scrutinize the existence of fees, especially monthly service charges, overdraft fees, non-sufficient funds charges, and third-party ATM fees. These elements collectively contribute to a bank’s score, with fees accounting for 30%.

Access: 10%

In an era dominated by digital transactions, access to cash remains crucial. We evaluate the size of a bank’s ATM network and, to a lesser extent, the availability of physical branches, as they still hold relevance in certain situations. Access contributes 10% to the bank’s rating.

Customer Experience: 5%

Trusting online reviews and ratings, we assess a bank’s customer experience. We consider grades from credible sources like the Better Business Bureau (BBB), J.D. Power, and Trustpilot to gauge customer satisfaction. Customer experience holds a 5% weight in our evaluation.

Digital Experience: 5%

A seamless digital experience is vital in today’s banking landscape. We examine a bank’s app ratings on the Apple App Store and Google Play Store, along with the functionality of its online banking access and the availability of online bill pay. Digital experience accounts for 5% of the rating.

The Criteria for Inclusion

Not all banks made the cut, as we focused on presenting only the best options. Some of the largest and most well-known financial institutions may not appear on our list. Why? It’s simple—these giants rely on brand recognition and don’t necessarily offer competitive yields. Their prominence alone keeps them top of mind for most Americans.

In conclusion, while high-yield checking accounts may not offer astronomical returns, they play a vital role in your financial ecosystem. By understanding their purpose and how to pair them with high-yield savings accounts, you can maximize your financial potential. When selecting an account, consider the methodology we’ve outlined, ensuring you choose an option that aligns with your financial goals and preferences.


1. Are high-yield checking accounts the same as regular checking accounts?

High-yield checking accounts differ in that they offer higher interest rates compared to standard checking accounts. They are designed to help you earn some extra income on your deposited funds.

2. Is there a limit to how much I can withdraw from a high-yield checking account?

High-yield checking accounts typically do not have a limit on withdrawals, allowing you to access your money whenever you need it.

3. Can I have both a high-yield checking and a high-yield savings account?

Yes, it’s common to have both accounts. A high-yield checking account provides liquidity and earns interest, while a high-yield savings account may offer even better interest rates.

4. What fees should I be aware of with high-yield checking accounts?

You should be mindful of potential fees, including monthly service charges, overdraft fees, non-sufficient funds charges, and third-party ATM fees. Review the account terms to understand the specific fees associated with your chosen account.

5. How do I open a high-yield checking account?

Opening a high-yield checking account is typically a straightforward process. Choose a financial institution, apply for the account online, receive approval, make an initial deposit, and start managing your finances efficiently.

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