Are High-Yield Checking Accounts Worth It?

Everyone appreciates and understands the convenience of checking accounts, and high-yield checking accounts, sometimes called interest-checking, bring even more to the table.  

High-yield checking accounts allow you to earn on your balance while still having access to your funds, just like a regular checking account, but they sometimes have higher balance requirements and may have different qualifications than a traditional checking account. These accounts can help you earn on your balance faster with higher rates.  

Arkansas Federal Credit Union currently offers two high-yield checking accounts—Elite Checking and Premium Checking— with numerous features and benefits. Open your account with Arkansas Federal and start earning today. 

What Is a High-Yield Checking Account?

A high-yield checking account is a checking account where you can earn on your balance, like a savings account, while having full access to funds. These accounts usually offer higher interest rates than regular checking accounts, making them a great choice if you want to earn on your checking balance. 

To earn those higher rates, you’ll likely need to meet a few requirements, like maintaining a minimum balance or making a minimum number of transactions per month. But the perks can be worth it. In exchange, you’ll enjoy better earning potential. 

A high-yield checking account can also be a smart choice if you already use—or plan to use—multiple financial services from the same bank. By consolidating your accounts, you can take full advantage of the perks and rewards your bank offers, not to mention it can make it easier to track your finances at one financial institution.  

Setting up a high-yield checking account is easy, too. With Arkansas Federal, you can apply online and get started in less than 10 minutes. 

Are High-Yield Checking Accounts Worth It? 

High-yield checking accounts can be worth it, especially if you want to earn more on your money while still keeping it accessible. They come with some great perks that regular checking accounts don’t offer, but they may not be for everyone. Here’s what you should consider: 

1. Earn Interest on Your Balance 

One of the best things about high-yield checking accounts is that they let you earn interest on your balance, just like a savings account—but while having easy access to your money. If you tend to keep a larger balance in your checking account that you don’t need to spend right away, this can be a great way to make your money work harder for you. 

2. Higher Minimum Balance Requirements 

High-yield checking accounts often require a higher daily minimum balance than traditional checking accounts. If you’re used to keeping a lower balance in your checking, you might need to make some adjustments. For example, with Arkansas Federal, you’ll need to maintain a daily balance of $2,500 to avoid a monthly maintenance fee. So, it’s best to research the minimum balance requirements before opening an account. 

3. Interest Rates Can Change 

Interest rates on high-yield checking accounts can change—they can go up or down depending on the market. So, while you’ll typically earn more, the rate might not stay the same over time. 

So, Are They Worth It? 

If you can keep a higher balance and don’t mind a bit of fluctuation in the interest rate, a high-yield checking account can be a great way to earn on your balance without locking your money away. 

Benefits of High-Yield Checking Accounts

High-yield checking accounts offer some great perks to help your money work harder. One of the biggest advantages is the higher interest rates—many accounts offer an APY of 3% or more, which is much better than what you’d get with a regular checking or savings account. 

You also get full access to your money. Unlike a Certificate of Deposit (CD), where your funds are locked, a high-yield checking account lets you use your money for everyday transactions like paying bills or making purchases, all while earning on your balance. 

Another big plus is that your funds are insured and safe, just like a traditional checking account. The FDIC or NCUA backs most high-yield accounts, so your money is protected. 

Finally, there’s no market risk. While interest rates may change, your balance won’t fluctuate with the stock market, so you don’t have to worry about losing money. 

In short, a high-yield checking account lets you earn more, stay flexible, and keep your funds secure—all at the same time. 

High-Yield Checking Account Requirements

If you’re interested in a high-yield checking account, you’ll need to meet certain requirements, which can vary from those of a standard checking account. 

To qualify for a high-yield checking account, you’ll typically need to maintain a minimum daily balance to avoid a monthly maintenance fee. The exact amount can vary depending on the bank or credit union, so it’s important to know what that minimum is before you open the account. 

In some cases, high-yield checking accounts may also come with additional requirements to earn on your balance. For example, you may need to complete a certain number of transactions each month to qualify for the best interest rates. 

Because requirements can differ from one financial institution to another, it’s a good idea to check with your bank or credit union to fully understand what’s needed to qualify for a high-yield checking account. 

Is a High-Yield Checking Account Right for You? 

Opening a high-yield checking account might be a good idea if you have a high account balance or keep a lot of money within a single account. The benefits of high-yield checking accounts may also be a reason to consider opening an account.  

With an Arkansas Federal high-yield account, such as Elite or Premium Checking, you get access to a higher annual percentage yield and early pay, which allows you to access your paychecks soonerDirect deposit and earlier availability of funds in your Arkansas Federal account are subject to your employer/payer, or benefit provider’s funding. Actual payment dates may vary. with direct deposit, along with several other benefits. 

If you are interested in opening a high-yield checking account with Arkansas Federal, you can apply online in just a few minutes, visit one of our branches today, or call our Contact Center at (501) 982-1000 to learn more.