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Youve probably always thought that if you want to earn interest on your money, you move it to a savings account. Your checking account is just for paying bills and the like, right? Not anymore.
With the rise of online-only banks that dont have the overhead of brick-and-mortar locations, the competition for your checking dollars has gotten fierce. One of the big benefits of this battle is that many banks are now offering interest-yielding checking accounts. And while you may not rake in giant interest rates, you can definitely earn a little something on that money and why wouldnt you?
Here are our top six high-interest checking accounts that could help your money grow.
How We Picked the 6 Best Checking Accounts That Pay Interest
Our methodology for this list is pretty simple: According to the FDIC, the average interest rate for interest-bearing checking accounts is currently 0.05%. Were looking for checking accounts that beat that average.
Beyond the interest rate, we looked at what else the account brings to the table. We gave preference to those accounts that dont have maintenance fees or high minimum balances and that offer ATM fee reimbursement.
The 6 Best High-Interest Checking Accounts
Without further adieu, here are the six best high-interest checking accounts where you can use your money and make a little money at the same time.
1. SoFi
One of the highest interest rates weve found for an online checking account is from SoFi Money. That checking account earns you 1.6% APY, or annual percentage yield, which is percent in interest (including compound interest) youll earn on your money in a year.
Frankly, thats practically unheard of. Thats more than 32 times higher than the average interest-bearing checking account. Heck, its better than the rate on a lot of savings accounts.
SoFi Money takes a number of steps to make the transition to online banking easy:
ATMs: With automatic reimbursement of ATM fees, you can use just about any ATM anywhere for free. Checks: If you occasionally need a physical check to pay your landlord or whatever you can get checks from SoFi for free. Website: SoFis website and mobile apps have detailed FAQs, and they make it simple and easy for you to find any information you want.2. NDKC Personal Checking
The NBKC Personal Checking Account offers 1.01% interest on all balances and has no minimum balance requirement. Thats a pretty sweet deal at 20 times the national average. It also features $0 overdraft and non-sufficient funds charges, so if you tend to overextend your money, you wont get dinged.
Do you use ATMs? NBKC Personal Checking also offers up to $12 monthly to refund those pesky ATM fees.
This account has a minimum opening deposit of $5, but youd probably deposit at least that much anyway.
3. Memory Bank
You may not have heard of Memory Bank. Or maybe you did and you just forgot. (Get it?) Anyhoo, Memory Banks EarnMore Checking Account is another great option for a high-interest checking account with 0.90% APY.
Memory Bank is a great choice for those of us who like the perks of online banking, but also want to know that we can get personal service when we need it. They offer live support by phone, email, or online chat. That can be a great benefit when you just need to ask a quick question, but dont want to get stuck on an automated phone system for an hour.
4. Capital One 360
The real beauty of the Capital One 360 Checking Account is the pure ease of its online banking setup. Both the website and the app are remarkably intuitive. Plus, you wont have any minimum balance or fees to deal with.
The base APY right now for the Capital One 360 is 0.2%, which is a respectable four times the national average. However, if you manage to save up a little, youll earn even more. Balances from $50,000 to $100,000 earn 0.5%. Balances above $100,000 earn 0.75%.
FROM THE BANKING FORUM
5. Charles Schwab
OK, when you think Charles Schwab, you probably dont think about checking accounts. That could change. Its High Yield Investor Checking is a free account that earns 0.15% APY on your balance.
It also features unlimited ATM fee rebates worldwide. Thats pretty cool if you travel a lot.
This account has no minimum balance, no minimum opening deposit and no maintenance fees.
There is one catch: You need to have a Schwab One brokerage account linked to your checking to avoid maintenance fees. It may not be for everybody, but if you already invest, why not take advantage of it?
6. Ally Interest Checking Account
As the name suggests, youll earn interest with the Ally Interest Checking Account. For balances under $15,000, youll earn 0.1%, which isnt all that remarkable.
But, if you tend to have $15,000 or more on hand, you can earn 0.5%. While 0.5% may not seem like much, thats 10 times the national average for checking accounts that pay interest.
Allys Interest Checking really makes its mark with the other perks. The account has:
No maintenance fees. No minimum balance requirement. No minimum opening deposit. Easy online access.Another nice perk is that Ally will reimburse you for up to $10 worth of ATM fees charged by other banks per statement cycle.
How to Choose a High-Interest Checking Account
If youre thinking about moving to a high-interest checking account, take a few things into consideration.
Look for accounts that wont negate those interest earnings by charging you fees. However, if you will carry a high balance, it may be worth paying a small fee to get a better interest rate. Do the math. Keep an eye on minimum balance requirements. We focused on accounts that dont require a minimum balance, but if you know that youll consistently have at least $1,000 in your account at all times, you may want to shop around a bit more. There may be a great deal out there. Look at the requirements. Maybe you dont use your debit card that much or you dont want to have direct deposit. Choose an account that fits with the way you like to use your account. Keep ATMs in mind if you use them. Its 2019, and you shouldnt have to pay those fees. There are too many banks that are willing to cover those for you. The app. If you do a lot of banking on your phone, make sure the bank you choose has a solid banking app.Once you find the checking account that checks all the right boxes for you and how you like to use your account, sign up and start earning money on your money already.
Tyler Omoth is a freelance writer covering topics from personal finance to career advice and even lawn care. His work has been featured on TopResume.com, Writersweekly.com and more. He is also the author of over 70 educational books for children and a proud parent of twin toddlers.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.