When was the last time you actually made some money by keeping your cash in the bank? The average checking account makes only around 0.06% in interest every year, according to a Bankrate survey. Yet, chances are you continue to leave your money sitting in these essentially zero-interest checking accounts, not pushing your pennies to their fullest potential.
A good checking account will grow your money and add interest to the money that you have in the bank already. Did you know that there are checking accounts available that offer up to 5% in interest? You just need to know which ones they are.
Move your money into a high-yield checking account, and you’ll be making the most of your money. What would you do with an extra 5% of your income? Let’s find out.
How to Optimize A High-Yield Checking Account
The average American’s checking account is not beneficial for growing your money. At the end of the day, you could be making the same kind of financial advances by hiding your cash under your mattress as you would with many traditional checking accounts. Most people make the mistake of using their checking accounts solely for storing money, and don’t consider how they could be making their checking account work for them.
To optimize your checking account, you must first determine if the interest rate and monthly fees are working in your favor. Most banks offer interest rates that are hard to turn down, but also charge fees if you don’t hold a particular minimum balance or meet a purchase quota for the month. These particular fees will probably stop you from making money.
Debt management site Student Loan Hero suggests comparing the monthly fees of your checking account with ATM fees, overdraft fees, and interest rates of several different checking accounts prior to choosing a new account. Without calculating how much your checking account will be spending, if you’re not careful you account could end up eating every bit of interest that you earn. For example, you can easily find a checking account that boasts a 2% interest rate, but if you’re being charged $5 every time you withdraw cash from an ATM, chances are you won’t make any money.
Bankrate also recommends determining whether you’re capable of meeting the mandatory requirements to earn the highest yield possible.
The Checking Accounts With The Best Interest Rates
Available at Northpointe Bank
The Ultimate Account by Northpointe Bank is regarded as the best high-yield checking account by Bankrate, offering an unbeatable 5% APY (annual percentage yield) on account balances below $10,000. There are ATM fees associated with this particular account, however, Northpointe offers a generous $10 reimbursement per month for withdrawals performed at non-Northpointe machines.
All you need to do to open your Northpointe Bank checking account is visit your local branch and make a $100 deposit.
High 5 Checking Account
Available at First Financial Credit Union
First Financial Credit Union also offers an amazing 5% APY bank account – no minimum balance required, no monthly fees. Awesome, right? There is a catch, though: if you accumulate more than $2,500 in your account, you won’t receive interest on dollars over that cap.
To open one of these checking accounts, you must be a member with First Financial. Anyone who donates to a nonprofit is able to join First Financial Credit Union and open new accounts.
All Access Advantage Checking Account
Available at La Capitol Federal Credit Union
La Capitol Federal Credit Union now offers a high-yield All Access Advantage checking account, where you can secure 4.25% APY on balances up to $5,000. If your account balance exceeds the $5,000 limit, you will only be earning 0.15% interest as a result. The requirements for opening this account is a minimum $50 deposit, but offers other benefits such as up to $25 in ATM reimbursement fees every month.
Pay a $20 fee, and you can become a full member of La Capitol Federal Credit Union and have instant access to all benefits.
Kasasa Cash Checking Account
Available at One American Bank
The Kasasa Cash Checking Account offers a high-yield 3.5% APY. With no fees and no required monthly minimums or direct deposits, this account is a great checking account option – particularly since you can earn interest on any balance up to $10,000. You’ll also be reimbursed for any ATM withdrawal fees performed anywhere across the country.
To open this checking account, simply make a $50 deposit.
Available at Aspiration
While Aspiration’s Summit checking account has a lower-yield percentage than the other accounts in this list, it does offer awesome benefits. This account is considered the “Best Checking Account in America” by Money, and is amongst NerdWallet’s top checking account recommendations. What’s more is that Aspiration’s claim to fame is that it offers 100 times the interest rate of the bigger banks, it has no fees, and it will cost you only $10 to open your account.
In terms of interest, you’ll be able to earn a modest 1% interest with the Summit account, but in order to do so you’ll need to hold a minimum balance of $2,500 per month.
Make The Most Of Your Money With The Right Checking Account In 2018
Face it, whichever checking account you’re with probably isn’t getting you the biggest bang for your buck. Instead of allowing your money to sit in an account stagnantly, weigh out the pros and cons of a checking account that will work for you to grow your balance. There are many options available, all you have to do is find the one that is right for you.
The best way to get started is to analyze different high-yield, interest-earning checking account options online. You never know what kind of promotions you might find – and you don’t want to miss out on 5% interest accounts or $0 in fees.