What is High Yield Checking?

A high yield checking account is exactly what it sounds like - an account that pays you more interest than merely "low." Not all banks offer this type of product though, so you need to shop around if your particular institution fails to meet your needs with its regular consumer accounts.

High yield checking offers vary widely from bank to bank, but in general, you can expect something along the lines of 1% or better on balances up to $30,000. Some institutions will go as high as $100,000, but if you do find an account like that the requirements for maintaining it will likely be more stringent.

What You Should Look For

As always, "no fee" should be your mantra when shopping around. No matter how high the yield might seem, avoid signing up with any institution that levies fees on its account holders. Even if they're minimal you'll just end up losing money over time due to compounding effects.

Additionally, "easy access" is essential - especially if you're going to keep a lot of money in the account and rely upon it for frequent transactions. You don't want to tie up your cash in a checking account which has restrictions on withdrawals or transfers until all of your bills are paid.

This type of account is designed for daily use by people who don't feel comfortable with "high yield savings accounts" (i.e. the ones which drop to 0% interest if your balance falls below a certain level). You'll want to be able to access your money quickly without any problems, so look for an institution that has locations conveniently located in your area and offers online banking as well.

If you can put up with the inconvenience of having to visit a local branch every now and then it's almost always better to go for a bank that doesn't have physical outposts. That way, you're free to deal directly with customer service reps over the phone or through email rather than being forced into awkward conversations with tellers when you visit the branch.

Additional Information

In addition, you should double-check to make sure that your high yield checking account is a free one - not a "buddy" product that offers free checks for a limited time and then charges you an arm and a leg once they run out. Some institutions will offer special promo codes or coupons in order to get people started with their accounts, but after that initial flurry of activity, the fees begin to mount up...and quickly!

If at all possible it's best to avoid these tactics altogether by going with an institution that makes no bones about its fee policy from the start. You shouldn't have to puzzle over complex disclosure forms or long pages of fine print particularly since most banks are forced to disclose their rates and charges upfront as a matter of law.

In short, make sure you do your homework before signing on with any bank for an account - even if it sounds like a promising one from the start. In many cases companies will offer special deals to new customers but increase those fees after you've been using the account for a while...and multiplying those percentages over time adds up fast! 

Be on the lookout for gimmicks and false promises, too. Some banks will resort to some shady practices in order to get people into their doors - primarily by offering an amazing yield then immediately decreasing it by a significant percentage after a set period of time has passed.

Meanwhile, you'll be stuck with whatever yield they deem fit at that point in time. It's all very sneaky and underhanded, but there are plenty of financial institutions out there which are willing to stoop this low just to get business.

As always, remember that your money is yours and not theirs! Don't sign up for crappy deals just because somebody claims that it's "the best you'll find" or any variation thereof...especially when the deal in question is being pushed by a third party who has a vested interest in grabbing as much of your money as possible.

If you want the best rates, the easiest to deal with customer service reps, and a good overall experience then you need to find an institution that's straightforward from the very beginning. In many cases, those institutions will have relatively low daily balances or be willing to waive fees altogether just for signing up!

Conclusion

The good news is that you can find out exactly what kind of treatment you should expect by visiting our website. We keep an updated list of all the best checking accounts on the market so feel free to have a look around - it's full of information that might just help you locate the perfect account for your needs!