Excessive-interest checking accounts work equally to a regular checking account however with the power to earn curiosity. You possibly can deposit and withdraw cash and are given a debit card. You then earn curiosity primarily based in your steadiness.

Incomes curiosity means the financial institution takes a proportion of your steadiness and pays you that quantity. To be thought-about a “high-interest” checking account, this proportion (APY) is above common. In keeping with the Federal Deposit Insurance coverage Company (FDIC), the common checking rate of interest is presently 0.07%.¹

Every financial institution or credit score union will set its personal checking account rates of interest. This will likely range primarily based on the account. Some banks will even provide you with a better APY for bigger balances. For instance, it’s possible you’ll earn 0.01% curiosity on a steadiness of as much as $10,000, however 0.02% on a steadiness over $100,000.

Different names for high-interest checking accounts

Relying on the monetary establishment, it’s possible you’ll discover different phrases for high-interest checking accounts. As an example, some accounts are known as high-yield checking accounts, high-rate checking accounts, or rewards checking accounts.

These phrases are usually interchangeable — they will all consult with a checking account that gives a better rate of interest than a regular checking account. Rewards checking accounts might produce other perks, like cash-back rewards on a debit card or reimbursement for out-of-network ATM charges.