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What Is a Rewards Checking Account?
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Rewards checking accounts might earn interest or provide a generous sign-up bonus, but some carry high monthly fees — think $20 or more — unless customers keep their accounts padded with a high balance or meet some other requirement.
Still, finding a rewards checking account that doesn't have steep fees and requirements is possible. Here's a look at how to qualify for one of these accounts — and whether you should even want to.
Rewards checking accounts often come with excellent perks, such as:
One-time sign-up bonuses of up to a few hundred dollars.
High annual percentage yields for checking standards (often 1% or higher).
Reimbursements for ATM surcharges.
Cash back.
Sometimes, the highest APYs are tied to balances. For example, you may earn a high rate only if you keep your balance under $10,000. Know the requirements involved, including what it takes to waive the monthly fee, in order to get the best deal.
How to qualify for rewards checking
Although the criteria to receive these benefits vary by account, generally you'll have to meet a few requirements, such as:
Making 10 to 15 debit card transactions each month.
Using self-service options such as electronic statements, online banking, ATM deposits or online bill pay at least once each month.
You may be asked to fulfill all of these requirements, some combination of the three or different ones altogether; keeping a minimum balance is another popular one. It depends on the account. Check to see what those requirements are, and ask yourself whether you could meet them on a regular basis.
4.25%Annual Percentage Yield (APY) is accurate as of 01/09/2025. APY may change at any time before or after the account is opened. Available only online.
5.00%Annual Percentage Yield (APY) is accurate as of June 17th, 2025. Start earning 2.50% APY, then qualify to earn 5.00% APY on your balance up to $5,000.00 and 2.50% APY on balances over $5,000 next month by 1) Receiving direct deposit(s) totaling $1,000 or more; and 2) Ending the month with a positive balance in all your Varo Accounts. No fees, no minimums required. Rates subject to change at any time.
4.00%Annual Percentage Yield (APY) may change at any time and fees may reduce earnings. Please visit etrade.com/ratesheet for more information.
Min. balance for APY
$0
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
Up to 4.50%The Base Annual Percentage Yield (APY) is 4.00% as of 06/30/25, but is variable and is subject to change. If you are eligible for the overall boosted rate of 4.50% offered in connection with this promo, your boosted rate is also subject to change if the base rate decreases during the three-month promotional period. This limited-time promo offers eligible new Wealthfront clients a 0.50% APY increase over the standard variable base APY for 3 months on up to $250K in their personal Cash Accounts. Cash Account offered by Wealthfront Brokerage LLC, Member FINRA/SIPC, and is not a bank. APY (is representative, requires no minimum) is paid from our Program Banks.
4.65%Cash Reserve offered by Betterment LLC and requires a Betterment Securities brokerage account. Betterment is not a bank. Learn More (https://www.betterment.com/cash-portfolio). Annual percentage yield (variable) is 4.00% as of 12/27/24, plus a 0.65% boost (“APY Boost”) for new clients with a qualifying deposit. $10 min deposit for base APY. Terms apply (betterment.com/boost); if the base APY changes, the Boosted APY will change. FDIC insurance provided by Program Banks (https://www.betterment.com/cash-portfolio), subject to certain conditions.
Min. balance for APY
$0
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
3.00%Annual Percentage Yield (APY). APY may change at any time and fees may reduce earnings. Please visit etrade.com/ratesheet for more information. The $15 monthly account fee can be waived when you maintain an average monthly balance of at least $5,000 in the account on or after the end of the second calendar month from opening the account.
Monthly fee
$15
Money market accounts pay rates similar to savings accounts and have some checking features.
Money market accounts pay rates similar to savings accounts and have some checking features.
If an account truly is free, there isn't much downside to choosing one that offers rewards as well. Even if you don't qualify for any of the add-ons, you'll still have a free account. That's a win in and of itself.
Problems arise, though, if you find yourself straining to meet the monthly requirements to have fees waived. For example, by forcing more debit card transactions than usual, you may end up overstepping your budget and triggering an overdraft. In that case, the interest you've earned won't make up for excessive spending and fees.
Rewards can play a role, but not the main one
There's nothing wrong with having rewards sway your decision if you've narrowed down your search to two accounts that suit your needs. If that's the case, then by all means go for the one that does more than just store your money.
But don't let flashy rewards lure you into signing up for an account that could do more harm than good.
