Best High-Yield Checking Accounts of May 2023: up to 5.30% APY

Sophia Acevedo, Personal Finance Insider:

“I think eligibility requirements could play an important factor in deciding between a bank or credit union. At credit unions, usually, you meet certain requirements to open bank accounts — maybe it’s living in a specific area, or working for a select employee group. There are a few credit unions with flexible eligible requirements, though.”

How can someone determine whether a banking institution is the right fit for them?

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

“The No. 1 thing about a checking account is you should know what provider the debit card is coming from. And a lot of people don’t think about that, because there are places that don’t accept MasterCard or don’t accept an Amex.”

Methodology

We looked at accounts that paid the highest rates either on your entire balance, or on up to a high balance. We chose accounts that make it relatively easy to be eligible to earn interest. For example, we’d prefer a checking account that required you to deposit $500 per month to earn interest over one that required $5,000 per month.

We examined other factors, too using our checking account methodology, like monthly service fees, out-of-network fee reimbursements, and minimum opening deposits.

Credit unions typically pay the highest rates on checking accounts. Credit unions only offer services to members, so we selected credit unions that are easy for most people in the US to join. But keep in mind that a local or more selective credit union may offer better rates.

Best High-yield Checking Accounts Frequently Asked Questions

Axos Bank Rewards Checking

Why it stands out: Axos Bank Rewards Checking allows you to earn a competitive interest rate and get unlimited ATM fee refunds. This account also might be a good option if you’re looking to avoid overdraft fees.

How interest works: You’ll earn interest on balances up to $50,000 if you do the following:

• Earn 0.40% APY when you receive at least $1,500 in direct deposits in a month. You have to meet this requirement to be able to earn any additional interest.
• Earn 0.30% APY when you make 10 debit card transactions in a month (minimum $3 per transaction) or you need to sign up for Account Aggregation/Personal Finance Manager.
• Earn 1.00% APY if you keep at least a daily average of $2,500 in an Axos Managed Portfolios Invest Account monthly.
• Earn  1.00% APY if you keep at least a daily average of $2,500 in an Axos Self Directed Trading Invest Account monthly.
• Earn 0.60% APY if you make a monthly Axos consumer loan payment with your Reward Checking account

If you accomplish all goals in a month, you earn the maximum available APY.

What to look out for: Account balances over $50,000 won’t earn interest. If you would like to maintain a high account balance, your may prefer another high-yield checking account.

Axos Bank Review

Consumers Credit Union Free Rewards Checking Account

Why it stands out: Consumers Credit Union ranks as one of our top credit unions, and Consumers Credit Union Free Rewards Checking is on our favorite rewards checking accounts list. You have the potential to earn one of the highest interest rates out there right now. Consumers also refunds any fees charged by out-of-network ATM providers.

How interest works: Here are the APY tiers:

• Earn 3.00% APY on balances up to $10,000 when you sign up to receive eDocuments, make 12 debit card purchases per month, and receive $500 per month in direct deposits, mobile check deposits, or transfers from other banks.
• Earn 4.00% APY on balances up to $10,000 when you meet the qualifications to earn 3.00% APY and spend $500 per month with your Consumers Credit Union credit card.
• Earn 5.00% APY on balances up to $10,000 when you meet the qualifications to earn 3.00% APY and spend $1,000 per month with your Consumers Credit Union credit card.
• Earn 0.20% APY on balances between $10,000.01 and $25,000 when you receive eDocuments, make 12 debit card purchases per month, and receive $500 per month in direct deposits, mobile check deposits, or transfers from other banks.
• Earn 0.10% APY on balances of $25,000.01 and more when you receive eDocuments, make 12 debit card purchases per month, and receive $500 per month in direct deposits, mobile check deposits, or transfers from other banks.

What to look out for: You need a Consumers Credit Union credit card to earn the maximum APY, and if you don’t meet any of the qualifications listed, you’ll only earn 0.01% APY.

Consumers Credit Union Review

Juno Metal Checking Account

Why it stands out: Juno gives you both a high interest rate and cash back rewards. Select five retailers from its list and earn 5% cash back when you shop at those stores. You may like the account if you’re an immigrant, because you only need a Social Security number and passport to qualify.

How interest works: You don’t need to do anything to earn interest, but rates do vary depending on your balance. Rate tiers are as follows:

• You’ll earn 5.00% APY on balances up to $50,000
• You’ll earn 4.00% APY on balances between $50,001 to $250,000

What to look out for: The Juno Metal Checking Account requires that you maintain a qualifying direct deposit of $250 or more per month.

Juno Review

Redneck Bank Rewards Checkin’ Account

Why it stands out: You might like Redneck Bank if you frequently use your debit card, because the bank’s rewards checking account has a competitive bonus interest rate if you meet certain monthly requirements. You could also get refunded up to $25 per month in out-of-network ATM fees if you qualify for the bonus interest rate. 

How interest works: You can earn 5.30% APY on account balances up to $15,000, and 0.50% APY on amounts over $15,000 if you fulfill the following activities each month:

• Make 10 qualifying debit card transactions per monthly statement cycle 
• Receive online bank statements

If you do not meet the monthly requirements, you’ll earn a standard rate of 0.25% APY.

What to look out for: Redneck Bank has a steep minimum opening deposit of $500 to open the Redneck Bank Rewards Checking Account. You might prefer another financial institution if you’d like to open an account with less money upfront.

Redneck Bank Rewards Checking Account

SoFi Checking and Savings

Why it stands out: In addition to offering a competitive interest rate, SoFi Checking and Savings is a great choice if you’d like to avoid common fees. This account doesn’t have monthly service fees, overdraft fees, or out-of-network ATM fees.

You may also qualify for a cash bonus of up to $250. To earn a $50 cash bonus, you must receive between $1,000 and $4,999 in qualifying direct deposits by December 31, 2023. To earn a $250 cash bonus, you must receive $5,000 or more in qualifying direct deposits before the bonus expiration date. 

How interest works: You’ll earn a higher interest if you set up direct deposit. SoFi members with direct deposit earn up to 4.20% with direct deposit APY on savings balances (including Vaults) and 1.20% APY on checking balances. 

If you do not set up direct deposit, you’ll earn 1.20% APY on both checking and savings account balances.

What to look out for: SoFi doesn’t have as many bank account options as brick-and-mortar financial institutions. For example, you can’t open separate checking and savings accounts or a CD. 

SoFi Checking and Savings Review

Wealthfront Cash Account

Why it stands out: The Wealthfront Cash Account stands out because you can earn a high interest rate on your entire account balance. There also aren’t any monthly service fees.

How interest works: All you need to do is open an account with at least $1. You’ll earn 4.55% APY on all money in the account. 

What to look out for: Wealthfront only offers the Wealthfront Cash Account. If you’d like to open other types of accounts, like a CD or money market account, you might prefer another financial institution. 

Wealthfront Cash Account Review

Wings Financial Credit Union High-Yield Checking Account

Why it stands out: Along with its high interest rate, Wings Financial gives you 10 free withdrawals each month from an out-of-network ATM. The credit union also lets you choose to either link to your savings account for free overdraft protection or tap into an overdraft line of credit. We’ve chosen Wings Financial as one of our favorite credit unions.

How interest works: You’ll earn a high interest rate on balances up to $25,000 each month you do the following:

• Enroll in e-documents (You should only have to enroll once)
• Receive over $300 in direct deposits
• Make 15 debit card purchases of $5 or more

What to look out for: Wings Financial is fairly generous about out-of-network ATMs, because it doesn’t charge you for the first 10 withdrawals each month. But keep in mind that the ATM provider may still charge you, and Wings Financial won’t reimburse those fees. It will also charge you $2.50 per ATM transaction after your first 10 out-of-network visits per month. If you use ATMs frequently, keep an eye out for these charges.

Wings Financial Credit Union Review

Other Accounts That Didn’t Make the Cut and Why

We looked at nearly two dozen high-yield checking accounts before picking our favorites. Here are the other ones we considered, and the reasons they didn’t make the cut:

• Connexus Xtraordinary Checking Account: Connexus only pays up to 0% to 1.75% APY. Our top picks have the potential to earn a higher interest rate by meeting certain requirements.
• Quontic High Interest Checking Account: Quontic pays a solid interest rate on your account balance if you make at least 10 monthly debit card purchases that are at least $10. But our top picks offer higher interest rates right now. 
• Alliant High-Interest Checking: Alliant is a good credit union, and you’ll earn a respectable rate on your entire balance. The rate isn’t as high as what you’ll get with our top choices, though.
• Ally Interest Checking Account: Ally pays higher rates than many banks, but its highest-tier APY isn’t competitive with those on our list.
• Bethpage FCU Free Checking: The interest rate isn’t quite as good as rates with our top picks, and there’s no free overdraft protection.
• Blue Extreme Checking: You can earn a high rate depending on your membership level. There’s an intricate point system determining which level you’re at.
• City First Bank Personal Checking Account: This bank pays a higher rate than most brick-and-mortar institutions, but rates are much lower than with those on our list.
• CIT Bank eChecking: CIT’s rates aren’t quite as good as what you can get with our top choices.
• NBKC Everything Account: Although NBKC’s rate could be higher, it’s a decent option if you want a hybrid checking/savings account. You don’t need to meet any qualifications to earn interest.
• One account: One only pays its highest rate on your Auto Save bucket, and you’re only allowed to put up to 10% of your paychecks into Auto Save. But if you don’t usually save more than 10%, you could get a great rate.
• PenFed Access America Checking: PenFed is a strong credit union overall, but you’ll earn better rates with our top picks.
• LendingClub Rewards Checking Account: You won’t earn any interest on balances under $2,500, and the rate is relatively low for balances under $100,000.
• Robinhood Cash Management: This account isn’t accepting new customers currently. If you’d interested in Robinhood spending products, you can’t join this waitlist for the Robinhood spending account.

Are These Institutions Trustworthy?

The BBB assesses businesses by looking at responses to customer complaints, honesty in advertising, and transparency about business practices. The only institution on our list that hasn’t received a BBB rating yet is Redneck Bank.

Here are the BBB ratings for all of our other top picks: 

Juno currently has an F rating grade because it has received 27 complaints on the BBB website it has failed to respond to seven customer complaints. Its partner bank, Evolve Bank & Trust, currently has a B rating. It has received numerous customer complaints on the BBB website, and government taken was taken against the bank.

In 2022, the Justice Department required Evolve Bank & Trust to pay $1.3 million in a settlement that claimed discriminatory lending took place between 2014 and 2019.

Wealthfront currently has an F rating because eleven complaints have been filed on the BBB website, and it has failed to respond to six complaints. Wings Financial has a C rating because it hasn’t responded to two customer complaints, and two complaints have not been resolved.

Keep in mind a good BBB grade won’t guarantee that your relationship with the bank will be perfect. Make sure to also get other people’s perspectives and reviews.