Interest-bearing checking accounts do exist.
Why consider them? For one, it’s smart to have a bank account buffer—an extra cushion of cash in your checking account just in case. Still, you don’t want so large of a buffer that you worry about interest you’re not earning.
Best interest-bearing checking accounts
FNBO Bill Pay
Editor’s Take: Good rate, simple online checking.
360 Checking by Capital One
Editor’s Take: $50 bonus; 0.80% APY on balances over $50,000
Ally Interest Checking
Editor’s Take: 0.75% APY on balances over $15,000
PerkStreet
Editor’s Take: PerkStreet is a cash back debit card.
As you consider an interest checking account, consider the following:
- Some interest checking accounts require big minimum balances. If your average balance dips below this level, you’ll be charged a steep monthly fee, quickly eating away any interest you earned. Take Bank of America’s Tired Interest Checking Account. It’s available fee-free to anybody with $10,000 in combined assets with Bank of America (otherwise there’s a $25 monthly fee).
- Interest checking accounts rarely pay as much as high yield savings accounts. Even now that savings accounts yields are crumby, checking accounts paying interest usually lag.
(Note: The accounts here are affiliates, meaning we get some change in our online tip jar if you open an account. If you choose to support us in this way, thanks!)
