Best High-Yield Checking Accounts of July 2025

What is a high-yield rewards checking account?

A high-yield checking account, or rewards checking account, is the valedictorian of checking accounts. It typically has standard checking account features but with interest rates at the top of its class.

This is a major benefit because most standard checking accounts pay little or no interest. Another perk is that, unlike most savings accounts, the typical high-yield checking account has no limits on withdrawals.

However, these high-interest accounts might have certain requirements, such as completing a certain number of debit card transactions or deposits each month or receiving your statements electronically.

Some institutions may also cap the balances on which you earn the highest annual percentage yield (APY), so any money above this amount could earn lower or no interest.

A high-yield checking account is a great place to keep cash you need to access regularly. But if you won't need your funds in the near future, you may earn more by choosing a high-yield savings account instead.

What to look for in a high-yield checking account

Banks and credit unions are always competing for your business, making it worthwhile to shop around. As you compare high-yield checking accounts, consider some of these factors:

Competitive rates

The whole point of a high-yield checking account is the higher yield, so check the APY first. Any high-yield checking account worth its salt should pay considerably more than the national average.

Rate qualifiers

You may need to meet qualification requirements to earn the highest APY offered for your high-yield checking account. These can range from simply agreeing to receive electronic statements to making a specific number of deposits or withdrawals in a certain period.

Make sure you are aware of the qualifiers and feel confident you can meet them.

Fees

Account fees can eat into your overall returns on high-yield checking accounts. To earn the most interest, look for an account with minimal or no fees. Credit unions usually offer fewer and lower fees than traditional banks, but not always.

Some fees to watch out for include:

• Monthly maintenance fees
• Per-check fees
• ATM-use fees
• Overdraft fees
• Nonsufficient funds (NSF) fees
• Stop payment fees
• Phone inquiry fees

At the same time, you might be able to avoid some fees if you meet certain requirements, such as keeping a specific daily balance.

You can find a list of all charges on the bank's or credit union's fee schedule.

Access to ATMs

If you plan to use ATMs, you’ll want to know what ATMs are available. Some banks partner with specific ATM networks, and if you use a terminal outside the network, you might get hit with a fee.

In some cases, your bank may reimburse you for out-of-network fees, though you might be limited to a given amount of transactions per month.

FDIC or NCUA Insurance

No matter where you bank, you’ll want to know that your money is safe. Make sure the bank or credit union you’re considering has federal deposit insurance.

The FDIC insures balances for up to $250,000 per depositor, per insured bank, for each type of account you hold. The National Credit Union Administration (NCUA) offers the same coverage for accounts held at credit unions.

This insurance coverage can protect you if your institution goes bankrupt or closes.

Sign-up bonus

The cherry on top of any high-yield checking account sundae is an added sign-up bonus.

Although sign-up bonuses are wonderful to receive, make sure the checking account satisfies all your other requirements first. After all, you wouldn't want a sundae with just a cherry and no ice cream.

How to find the best high-yield rewards checking account for you

Picking the best high-yield checking account will depend on which features are most important for you.

You might focus on getting the highest possible APY or filter your choices to include only banks with a nearby branch or those with a large number of ATMs.

You should also pay close attention to qualifications and limitations. For example, if you don't plan to make regular deposits to your account, an account that requires 10 monthly deposits to earn the higher APY probably won’t be a good choice.

Consider making a list of which features are most important to you as you look at your options for high-interest checking accounts.

Pros and cons of high-yield checking accounts

High-yield checking accounts have a lot to offer, but they aren't always the best place to keep your money. Depending on your goals, another account type may be better.

Alternatives to high-yield checking accounts

Of course, high-yield checking accounts aren’t your only choice. Depending on your needs and goals, one of these other accounts may be a better fit:

• Traditional checking account: While traditional checking accounts don't usually pay much interest, they can still be a good place for small balances. You get easy access to your cash, and there are no high APY qualifications to worry about. Just make sure to check for any account fees first.
• High-yield savings account: If your top priority is earning the most interest possible on your money, a high-yield savings account may be best because it will likely pay more than high-yield checking. Savings accounts are good for cash you don't need to access frequently because the transactions you can make each month might be limited.
• Money market account: Money market accounts are a type of high-interest savings account that can often pay even better yields than a usual savings account. Like savings accounts, there is often a limit on transactions, and you may also need to meet a minimum deposit requirement.
• Cash management account: Cash management accounts combine checking and savings functions and usually come with a checkbook and debit card, while also offering interest like a savings account. However, they don’t always offer the best APY and might have minimum balance requirements or special fees.