Note: You can earn 5% on your checking or savings account right now — and many banks are offering it

That said, getting in on the action sometimes comes with some setbacks. The highest yielding accounts “work well for some consumers but not one-size-fits-all,” said Greg McBride, head of financial analysis at Bankrate. In fact, a lot of high-interest savings accounts pay 3% or more right now with fewer hurdles. (Compare some of the best savings accounts here.)

How to choose the right high yield checking or savings account

Finding a checking or savings account, says McBride, means finding a bank that matches your financial style in terms of digital and mobile capabilities, as well as branch accessibility and ATM.

You also need to understand what is expected of you to be more productive. “Earning that APY means meeting certain requirements each month — certain debit card transactions, online bill payments, direct deposit, and electronic statements. If those don’t fit your banking lifestyle, you may not be able to meet the requirements and make more pedestrian returns,” he added.

McBride adds that there are some danger warnings to consider. “Avoid checking accounts with balance requirements and monthly fees so you don’t unnecessarily trap money in a low-yield account just to avoid fees,” adding that there are plenty of options. choose no interest with no fee.

When it comes to finding accounts with rates higher than the national average, MaxMyInterest CEO Gary Zimmerman says to remember that checking accounts is, by design, used for trading needs. monthly and traditionally they are not used to hold large sums of money.

Compare some of the best savings accounts here.

Zimmerman says it’s important to find a “checking account that doesn’t charge a monthly fee and includes free ATM access anywhere.” For those with large balances, which are often necessary to meet the requirements of high-yield options, “you should also look for a bank that offers free wire transfers, as these fees can adds up quickly if you find yourself investing heavily or funding capital calls,” he said, adding that “most private banks offer free wire transfers, but the banks do. Regular shipments typically charge up to $35 per transfer.”

On the other hand, the way high yield savings accounts work is often binary: store your money and earn high interest rates. “The higher the rate, the faster your money will grow, and because of the power of compounding, the APY you earn is important,” says Zimmerman. “As long as the account is FDIC-insured, it really doesn’t matter which bank you choose.”

The bottom line: “There are online savings accounts available nationwide, with little or no minimum deposit, competitive yields, and can be linked to a checking account at an existing financial institution. at yours. This is an option that is really available to everyone,” McBride said.

5 bank accounts with the highest APY

Can’t seem to find a high-interest bank account on your own? MarketWatch Picks scoured the internet to bring you five checking and savings accounts with the highest available interest rates. (Recently we also report on a bank offers 7.5%, but only for a very small amount.) We have also listed the different requirements to take advantage of these high rates and linked directly to the registration pages their account. (OLDCompare some of the best savings accounts here.)

Credit Union Consumers Check Free Rewards: 5% APY

Meet the trading requirements on the Consumer Credit Union tiered balance system and earn up to 5% APY on account holdings up to $10,000. These various requirements include making at least 12 monthly debit card purchases, setting up electronic transactions (direct deposit, ACH transfer, or mobile check deposit), and making $1,000 la when purchasing a Consumers Credit Union credit card. Accounts with more than $10,000 earn between 0.10% and 0.20% APY. However, if you do not meet the requirements, the account holder will earn 0.01% APY on all balances.

Advantages:

• No monthly maintenance fee

• More than 30,000 ATMs and 5,000 shared branches

• Unlimited ATM fee refund

• Online banking and bill payment

Defect:

• $30 overdraft fee

• No signup bonus

Varo . Savings Account: 2% to 5% APY

Start with 2% APY for the first month of joining this account and qualify to earn 5% thereafter with balances up to $5,000. The requirements to earn this APY boost include receiving four direct deposits totaling $1,000 or more; and ended the month with a positive balance in both the bank account and the Varo savings account. After meeting those rules, accounts over $5,000 go on to earn 2% APY.

Advantages:

• Free

• No minimum balance required

• Earn up to $100 instant cash loan with Varo Advance

Defect:

• $30 overdraft fee

• External transfers capped at $10,000 per month.

La Capitol’s Selection Check Selection: 4.25% APY

Make sure you get 15 debit card transactions, excluding ATM transactions, deposited into your account before the end of the statement period and earn 4.25% APY on accounts up to $3,000 and from 4.25% to 2.67% APY for balances from $3,000.01 to $10,000. Balances over $10,000, or unqualified balances, earn an APY of 0.10%. The average account balance must not fall below $1,000 during the statement period.

Advantages:

• Cashback ATM fees up to $25 per month

• Online banking, bill payments and mobile banking apps

Defect:

• An $8 balance fee applies if the monthly debit transaction requirements are not met or if the average daily balance falls below $1,000 for the month.

• Members 18 to 59 years old are charged a $2 fee if they do not subscribe to electronic statements

Genisys high productivity test: 4.07% APY

Sign up for e-statements, use your Genisys debit Mastercard 10 times a month for purchases of $5 or more (ATM not included) and earn 4.07% APY on balances up to $7,500 with a Genisys high yield checking account. 0.05% APY is applied to balances above that threshold. Membership is also available only to residents of Michigan and certain residents of Minnesota and Pennsylvania.

Advantages:

• Low $5 minimum to open an account

Defect:

• $1.25 ATM fee per transaction after exceeding six monthly free limits at non-Genisys CO-OP ATMs

• Actual memberships and branch locations are only offered in Michigan, Minnesota, and Pennsylvania

Financial Factors High interest rate check Special: 4% APY

Account holders here can earn 4% APY on balances up to $20,000 in the first 12 months from account opening and 0.10% APY on balances above that amount. Balances under $20,000 earn an APY of 2%.

Advantages:

• There is no minimum requirement to open a new account

• No monthly fees for choosing electronic reports

Defect:

• $32 overdraft fee unless you link to another Elements account

• Although available nationally through its co-op branch network and Allpoint ATMs, Elements only has five physical locations in the state of Indiana.

• Low APY if you exceed your account max