Beyond Basic Banking: Rewards Checking and High-Yield Options
Why settle for 0% interest? Learn how rewards checking can offer cash back or high APY—if you meet the requirements—and how to stay safe from debit fraud.
Checking accounts used to be boring. Today, competition has created accounts that pay you to bank with them. These are generally divided into "Interest Checking" and "Cash Back Checking."
High-Yield Checking Accounts
These accounts can pay 3.00% to 5.00% APY on your checking balance, rivaling savings accounts. However, there is almost always a catch. To earn this rate, you typically must:
- Make 10-15 debit card purchases per month
- Enroll in e-statements
- Have at least one direct deposit
If you miss these requirements, the rate often drops to a default 0.01%. These accounts are best for disciplined spenders who naturally use a debit card frequently.
Cash Back Debit Cards
Some accounts offer 1% cash back on debit card purchases. Pros: Useful if you can't (or don't want to) use credit. Cons: Credit cards often offer 2%+ and better fraud protection. Cash back debit is better than nothing, but rarely beats a strong rewards credit card.
Security: Debit vs. Credit
A debit card links directly to your cash. If fraud drains your checking account, your real money is gone while the bank investigates. With a credit card, only the bank's money is tied up. Pro Tip: Keep most of your cash in a linked savings account and only what you need for the month in checking.
Disclaimer: Educational purposes only. Not financial advice.