In a traditional checking account, your money is earning essentially no interest. Since everybody could use some financial help these days, why not put your bank account to work with a higher than normal interest rate? Explore these checking accounts today!
The Effect of Covid-19 on Interest Rates
When was the last time your checking account made you some extra money? According to Bankrate, 49 percent of adults in the U.S. have experienced a decline in their income since the start of the pandemic. 1 This is leaving hardworking Americans in a financial pinch.
Pre-pandemic, there were checking accounts that paid as much as five percent in interest. Unfortunately, rates have been slashed in the last year. In March 2020, the Federal Reserve lowered rates twice resulting in a near-zero range. That said, there are a few accounts that will still get you an above-average return.
Make The Most Out of a High-Yield Checking Account
The return from an average American’s checking account is almost no better than storing your cash in your mattress. Most people deposit money into their checking account to store it until it’s needed to pay bills, pay off the credit card, or move in to a savings account. As it sits there, it’s doing nothing.
The first step in making more money from your checking account is to take a closer look at the interest rate and monthly fees. Many banks offer great interest rates, but charge a fee if you don’t meet certain criteria each month. Those fees don’t exactly help you.
Before you choose and open a new account, calculate how much money you’re planning on transferring over and how much you normally spend from your checking account each month, including number of transactions and ATM withdrawals. Otherwise, you may end up choosing an account that eats up every cent of interest you earn.
The Best 2021 Checking Accounts
Rewards Account
Available at Axos Bank
The Rewards Account by Axos Bank offers up to 1.25% APY (or annual percentage yield). This account uses tiers, allowing clients to earn between 0.4166% to 1.25% interest on any account balance up to a certain amount.
The bank offers unlimited reimbursement on domestic ATM fees. To get started, you simply need to visit a local Axos Bank branch and make a deposit.
Rewards Account
Available at Consumers Credit Union
At Consumers Credit Union, you can score a bank account with 2.09%, 3.09%, or 4.09% APY. There’s no minimum balance required, and no monthly fee. It offers unlimited reimbursement of ATM fees, if you meet the monthly requirements for a given tier.
The Rewards checking account does limit your earnings – any dollar amount within a certain threshold will earn a competitive interest rate. In order to qualify for one of these checking accounts, you need to become a member by paying a membership fee to the Consumers Cooperative Association.
eCentive Account
Available at Heritage Bank
Considered one of the best high-yield checking accounts by Bankrate, the eCentive Account by Heritage Bank offers 1.09% APY. 2 You’ll earn 1.09% interest on any account balance up to a certain amount.
You are required to make at least ten debit card transactions per month, get at least one direct deposit per month, and receive eStatements. Though you will have to pay ATM fees if you use non-Heritage machines, the bank does reimburse fees within a certain range per month. To get started, you simply need to visit a local Heritage Bank branch and make a deposit.
Earn More From Your Money in 2021
It’s time to put your money to work. And you can do this easily with the right checking account. There are a number of different options, you just need to find the right one for your banking needs.
To get started, assess all of the different high-yield and interest-earning checking account choices. For the latest checking account offers, compare interest rates and find an account that’ll pay you more.