The Best High Yield Checking Account for 2025
In the current financial surroundings, high-yield checking accounts are becoming ever more popular. This is a desirable choice for those who wish to optimize their savings because it offers better interest rates than standard bank accounts. There are multiple options available right now for opening a high-yield checking account. Every bank and financial organization has unique interest rates and promotional schemes of its own. In this post, we will explore the best high yield checking account for 2025 that you should not miss.
Learn about high yield checking account
Let’s start by looking at a few interesting details about high yield checking accounts with NHI Money:
What is a high yield checking account?
To start with, you can simply understand a high yield checking account as a type of bank account that provides higher interest rates than traditional checking accounts. These accounts frequently give exactly the same flexibility as an ordinary checking account, allowing you to write checks, make debit card transactions, and access online banking while earning a competitive interest rate on your balance.
So now, what is the main difference? Actually, high-yield checking accounts stand out for their high interest rates. Whereas the average APY for ordinary interest checking accounts is around 0.07%, high-yield checking accounts sometimes offer APYs of 3% or higher. This significant APY difference can lead to a significant increase in profits over time.
What are factors that you should look for in a good high yield checking account?
In order to seek a good checking account that assists you in financial health, it’s crucial to evaluate these factors in a high yield checking account:
- Interest rate: Seek out accounts with attractive APYs (annual percentage yields). Now , some of them have rates as high as 5.00% or marginally more.
- Fees: Some online banks may charge potential costs such as maintenance, overdrafts, ATMs, and international transactions. So, it’s important to comprehend the fee schedule to avoid having your interest earnings reversed.
- Minimum balance: Check if there’s a minimum deposit to open the account or a required balance to earn the high interest rate or avoid fees. Ensure you can comfortably meet these requirements.
Requirements for maintaining a high yield checking account
Another essential aspect is that in order to keep a high-interest rate and obtain a high interest rate, then you must follow certain restrictions imposed by banks or credit institutions:
- Minimum daily balance: Many banks need you to keep a minimum balance in your account on a daily basis in order to obtain a high interest rate, and this amount varies by bank. As a result, you must exercise extreme caution; if your balance goes below this level, you risk losing the benefit of a high interest rate or incurring monthly fees.
- Direct transfer from monthly salary: Banks require direct deposits into your account, such as from your paycheck or monthly income, in order to promote financial stability and establish a steady supply of funds for your account. Receiving direct deposits can help you earn a greater interest rate, and this is one of the typical requirements to have a high-interest account.
- Sign up for the bank online banking system: In addition to allowing you to easily monitor your account, online banking allows the bank to monitor and ensure that you are compliance with all the other regulations as well, including those regarding debit card transactions, and direct transfers. This improves usage efficiency and streamlines account management.
- Minimum number of debit card transactions per month: Another common requirement is that you complete a minimum number of debit card transactions each month. This could be in the form of shopping, paying bills, withdrawing money from ATMs and so on. The bank demands this amount of transactions to encourage you to utilize your account on a regular basis and to keep the account liquid.
Who would be suitable to use this kind of checking account the most?
In essence, in case you use your checking account on a regular basis and keep a large amount, a high-yield checking account can help you a lot in generating some passive money. Obviously, there are criteria for many high-yield checking accounts that you must fulfill in order to receive the greatest interest rate. However, you can make some extra money without putting in any more work if you already match the requirements. In contrast, if you are unable to comply with the account’s conditions in order to earn the highest APY or avoid costs, creating a high-yield checking account may not be worthwhile. A high-yield checking account is identical to a standard checking account, with the exception of generating a higher interest rate.
Useful financial calculator tools for you:
Best high-yield checking accounts: Up to 6.25%
With the main purpose of fostering your money to work harder, you can definitely consider below accounts that offer high interest up to 6.25%:
Credit Union of New Jersey
Overview
Credit Union of New Jersey (CU of NJ) was founded 80 years ago and initially served state employees. Today, it provides over 37,000 members with a variety of banking services such as personal and business accounts, loans, mobile banking, and financial wellness initiatives. CU of NJ is dedicated to providing individualized service and assisting members in thriving through a variety of financial options and community activities.
Key offerings
The Kasasa Cash® Checking account is one of the types of accounts offered by Credit Union of New Jersey that can satisfy your high-yield interest rate demands. It allows you to earn high monthly interest without monthly maintenance costs and has no minimum amount to receive interest.
- High interest: Earn up to 6.00% APY on daily balances of up to $25,00, even earn 0.01% APY on all balances if qualifications are not met.
- ATM fee return: If you meet the requirements, you will receive a monthly refund of up to $25 from ATMs across nationwide
- No monthly maintenance fees which can help you save your money
- Minimum to open account: just $5
Here are the specifics you need to be aware of to earn high interest rates and get ATM charge refunds:
- Debit card transactions: Complete at least 12 debit card transactions using a PIN or signature
- Online transactions: Register and agree to get electronic statements rather than printed statements
- Automatic transactions include at least one direct deposit, ACH credit, ACH payment, or bill payment transaction.
La Capitol Federal Credit Union
Overview
La Capitol Federal Credit Union (La Cap) is a federal credit union based in Baton Rouge, Louisiana, USA. La Cap, with its goal of “improving the financial situation of members,” provides a variety of financial services such as online and mobile banking, allowing members to manage accounts, pay bills, and transfer money rapidly. Members can also use the TEL-a-CAP telephone banking service to access their accounts at any time, day or night.
Key offerings
Increasing the money in your account while shopping and making payments has never been easier, the way forward lies with Choice Checking.
- High interest rate: Get up to 6.25% APY on balances of up to $10,000
- ATM fee refund: Refund ATM fees up to 25 USD each month when you sign up for electronic statements
- Get paycheck early: You can receive your salary up to two days earlier through direct deposit services
- Service fee waiver option: Monthly service fee waived when certain requirements are met
- Fee waived: You can get free for payments that are 10$ or less when your balance is not enough to cover those payments.
- 24/7 access service: Manage your account anytime, anywhere through online banking, mobile apps, and bill payment services.
- Key requirement: During the monthly statement period, make at least 15 debit card transactions (excluding ATM transactions), each worth at least $5.
- Notes of service fees:
- If your average daily balance is less than $1,000 or you don’t make at least 15 qualifying debit card transactions during the statement period, you will be charged a monthly service fee of $8.
- There is a monthly fee of $2 USD for receiving paper statements, unless you register for electronic statements or are under the age of 17 or older than 60.
Best high-interest accounts of 2025
Please carefully evaluate the following options for financial services with large interest rates to determine which one will best meet your needs.
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SoFi Checking & Savings
Overview
SoFi Checking & Savings is an online banking service offered by SoFi Bank, N.A. that combines checking and savings accounts. This is one of the financial services that provides the greatest possible interest rates, no monthly fees, and an overdraft protection program, ensuring the convenience and security of your financial base.
Perks
- Savings account: Earn up to 3.80% APY by setting up direct deposit or depositing at least $5,000 per month.
- Checking account: Get 0.5% APY on your checking account balance.
- Deposit insurance: The FDIC insures deposits up to $250,000 per individual.
- Bonus: New or existing customers who have not yet set up direct deposit can receive a bonus of up to $300 when they set up a qualifying direct deposit.
- Overdraft protection: Customers who deposit at least $1,000 USD directly each month are eligible for overdraft protection of up to $50.
- Early paycheck: With the direct deposit feature, you can receive your salary up to two days earlier.
Fees
- Minimum balance fee: $0
- Monthly maintenance fee: $0
- Overdraft fee: $0
- Inactive or dormant account fee: $0
- Return item fee: $0
Discover Cashback Debit
Overview
Discover Cashback Debit is typically a no-fee checking account that helps you earn rewards when you use your debit card to make daily purchases. This is actually an excellent choice that provides similar benefits as cashback credit cards, but in the form of a debit card, allowing users to better manage their spending without worrying about credit debt.
Perks
- Cash back: Users get 1% cashback on debit card purchases up to $3,000 each month, which equates to a maximum of $30 per month or $360 annually.
- Freely access over 60,000 ATMs in the US
- No-fee checking account: The account has no monthly or overdraft fees, and there is no minimum balance requirement.
- Get paid early: You can receive their paychecks up to two days early when they use the direct deposit feature.
- Overdraft service: The overdraft protection transfer service is free, which helps you avoid unnecessary fees.
- Digital wallet: Easily link your e-wallets such as Apple pay, Samsung pay and earn rewards on qualifying purchases.
Fees
- Minimum deposit fee: $0
- Monthly service fee: $0
- Overdraft fee: $0
- Insufficient fund fee: $0
- ATMs fee: $0
Axos Rewards Checking
Overview
Axos Rewards Checking is an online checking account offered by Axos Bank that is ideal for people who wish to minimize service fees because it does not charge monthly or overdraft fees and provides unlimited reimbursements for domestic ATM fees.
Perks
- Competitive interest rate: You can earn up to 3.30% APY on accounts up to $50,000. You can earn an additional 0.40% APY by receiving monthly direct deposits of $1,500 or more.
- ATM fee reimbursement: Axos reimburses limitless domestic ATM fees, so you can withdraw cash from any ATM without worrying about expenses.
Fees
- Minimum balance requirement: $0
- Monthly maintenance fee: $0
- Overdraft fee: $0
- Insufficient fee: $0
- Withdrawals at domestic ATMs: $0
To help you have a better visualization, below is our summary focused on maximum APY of checking accounts:
| High-yield checking accounts | Maximum APY |
| Credit Union of New Jersey (Kasasa Cash® Checking) | 6.00% on balances up to $25,000 |
| La Capitol Federal Credit Union (Choice Checking) | 6.25% on balances up to $10,000 |
| SoFi Checking & Savings (Savings Account) | 3.80% with direct deposit or $5,000/month deposit |
| Discover Cashback Debit | Cashback program instead of interest |
| Axos Rewards Checking | 3.30% on balances up to $50,000 |
Tips for succeeding with high-yield checking accounts
To get the most out of high-yield payment accounts, you should follow a few specific tactics. The following suggestions will make it easier to reach your financial goals.
- Choose a bank or credit union that is FDIC or NCUA insured
When depositing money in a bank, consider FDIC-insured banks or NCUA-insured credit unions to ensure your deposits are protected if the bank fails.
- Understand and meet account requirements
Most high-interest checking accounts require specific requirements to get the best interest rate, such as a minimum number of debit card transactions each month or receiving your salary through the account. Before creating an account, make sure you can meet all of these conditions each month; otherwise, you may lose the opportunity to earn a high interest rate.
- Watch out for account maximums
Most high-interest checking accounts only offer the high interest rate on a particular maximum balance. If you deposit more than that amount, the excess will receive substantially lesser interest (often only 0.01% APY). To maximize returns, transfer the surplus money to a high-interest savings account or other assets.
- Utilize technology to manage accounts
Nowadays, most banks provide mobile apps that allow you to conveniently manage your accounts. Using technology not only improves your financial management, but it also provides you with a greater understanding of your personal financial condition, such as track transactions, manage expenses, and check your account balance.
Pros and cons of high-yield checking accounts
We will analyze the pros and cons of high-yield checking accounts:
Pros
- High APYs: The most significant advantage of a high yield checking account is its competitive interest rate. Compared to a standard checking account (which typically has an APY of around 0%), this account can offer an APY of 6% or higher. Clearly, this allows you to make additional passive income on your account balance while still having the ability to use the money as needed.
- FDIC/NCUA coverage: Your deposits are definitely safeguarded up to $250,000 per depositor per bank if you open your account at a bank or credit union that is guaranteed by the FDIC or NCUA. Even in the event that the bank experiences financial difficulties, this helps you protect your money.
- Online account management: Conveniently, most high-interest checking accounts are managed online, so you can easily check balances, track transactions, and pay bills. Many banks provide mobile apps that allow you to track your finances right from your phone.
Cons
- A lot of requirements: To earn a high interest rate, most high-yield checking accounts have strict rules. The APY could drop to almost zero percent if you don’t meet the standards. Therefore, automating transactions (such as using a debit card to pay for Netflix or Spotify) is one way to satisfy the requirements without having to worry about it too much.
- Rate is not set: The interest rate on a high-yield checking account is variable and is determined by the bank’s policy and the economic climate. If market interest rates fall, the bank may lower the APY without being notified first.
- Opportunity cost: Keep in mind that high-interest checking accounts may not be ideal for everyone. If you have more money than the maximum amount for earning a high interest rate, the excess may only earn 0.01% APY. In this case, putting money into a high-yield savings account (HYSA) or investing may provide superior returns.
FAQ
Is there such a thing as a high-yield checking account?
High-yield checking accounts do exist, of fact. These checking accounts provide far greater interest rates than typical ones, which pay little or no interest. But here’s the catch: banks usually need consumers to meet certain criteria, such as making a particular number of debit card transactions each month, setting up direct deposits, or keeping a minimum balance. It’s their approach of encouraging consistent account activity and consumer loyalty.
Which bank gives 7% interest on savings accounts?
While savings accounts are almost always held at 7% interest rates, some banks offer significantly higher rates for checking accounts. For example, if you make at least 15 debit card transactions each month and have an account with La Capitol Federal Credit Union, you could earn up to 6.25% of the annual percentage yield (APY) on balances up to $10,000. Meanwhile, Pelican State Credit union guarantees an APY of 6.05% for accounts upstate $20,000. Nonetheless, please be aware that some restrictions are in place, such as a minimum number of direct transfers and debit card transactions.
How much will $10,000 make in a high-yield savings account?
For your $10,000 investment, there will quite literally be an infallible answer. In other words, what you can earn by depositing $10,000 into a high-interest savings account depends on that account’s annual percentage yield (APY). That is to say if you earn an APY with a 5% interest rate, you will make around $500 in a year. It means that if the APY is 3%, you earn roughly $300 in interest a year. But remember, this number can variable depending on the account conditions and the fluctuation of interest rates over time. In addition, the frequency of interest compounding also affects the amount of money you earn.
Which bank pays the highest interest rate on checking accounts?
Different banks, credit unions currently offer best interest rate accounts for checking. For example, La Capitol Federal Credit Union pays as much as 6.25% APY on accounts if you keep your max balance at $10,000 or less and meet certain monthly requirements, like making at least 15 debit card transactions. Pelican State Credit Union is another formidable competitor, with interest rates as high as 6.05% APY on balances up to $20,000. But the high interest rates are frequently subject to certain limitations, such as maintaining a minimum amount, receiving direct deposits, or carrying out particular transactions.
