Best Rewards Checking Accounts December 2023

Rewards checking accounts are one of those things that inexplicably fails to find a spot on the to-do list of the average person. But if you’re one of the many who aren’t funneling money through a rewards checking account, you’re lighting dollar bills on fire.

This is one of the easiest changes you can make to your financial strategy to combat inflation. Many come with hundreds of dollars in welcome bonuses—and even more than 4% annual percentage yield (APY). Here are our top picks for the best rewards checking accounts in November 2023.

Best rewards checking accounts compared 2023

Best overall: SoFi Checking

The SoFi Checking account is more than just a checking account. If you’re not interested in opening a checking account with savings account features, this may not be your favorite option, but it can net some substantial rewards.

For starters, you’ll receive up to 4.5% APY* on your savings account when you use direct deposit for your paycheck or add $5,000 to your account every 30 days. Otherwise, you’ll earn 1.2%. You’ll earn 0.50% APY* for your checking account balance. There’s no cap on the amount you can earn from the 4.5% return on your savings account.

Beyond that, you’ll receive a up to $250 after you receive direct deposits of $5,000+ within 25 days. If your deposits are less than $5,000, you’ll receive a $50 bonus. SoFi will also award up to 15% cash back when you use your debit card at select local merchants, which vary depending on location.

Best for customer support: Chase Total Checking

Chase is likely the most recognizable brand in our list of top rewards checking accounts. Recognition comes from ubiquity, which is accompanied by customer service benefits. Chase is well known for its support network, and its 4,700+ nationwide physical locations are helpful if you’d prefer to do your banking in person.

Chase Total Checking offers a $200 bonus to new Chase checking customers after making direct deposits totaling $500 or more within 90 days of enrollment. 

This checking account charges a $12 monthly service fee which is waived if you achieve at least one of the following:

• Receive at least $500 in electronic deposits
• Begin each day with at least $1,500 in your account
• Keep a daily average balance of at least $5,000 between this account and other linked qualifying deposit accounts

Also note that you’ll be charged a $3 fee when using an ATM not managed by Chase.

Best for free ATM use: Axos Rewards Checking

For those that make heavy use of ATMs and don’t want to be tied to using in-network ATMs to avoid fees, the Axos Rewards Checking account is a great option. All domestic ATM fees will be reimbursed, no matter how often you use them. The tradeoff is that the bank only has five brick-and-mortar locations in the country.

Axos offers a $300 intro offer when you use the code AXOS300 by June 30, 2024. It also comes with a higher-than-average potential APY among rewards checking accounts at Up to 3.30%(for up to $50,000). But a handful of qualifying activities are required to earn this full interest rate:

• Direct deposits totaling $1,500+ each month — 0.4%
• 10 point-of-sale transactions of at least $3 each month using your debit card (or enrolling in “Account Aggregation/Personal Finance Manager) — 0.3%
• Keep an average daily balance of $2,500+ each month in an Axos Self Directed Trading Invest account — 1%
• Keep an average daily balance of $2,500+ each month in an Axos Managed Portfolio Invest account — 1%
• Make a monthly payment to an open Axos Bank consumer loan by transferring from your rewards checking account (excluding commercial and business loans) — 0.6%

If you can manage to achieve all that, you’ll escape with Up to 3.30% APY. If you’re not all-in on Axos products, you’ll likely get a meager return.

Best for budgeting: Ally Bank Spending Account

Ally Bank’s checking account is a dream for those who like to micromanage their balances. You can create secondary accounts within your checking account to help you allocate money for certain bills, goals, and so on. For example, you may create an account for your grocery spending and another for restaurant spending to better manage budgeting.

Beyond that, the account isn’t spectacular for ongoing earnings from interest (though it’s markedly above the national average). You’ll receive 4.25% APY for account balances less than $15,000, and 0.25% APY for balances above $15,000.

Best for debit card purchases: Upgrade Rewards Checking Plus

Upgrade is one of the few companies that offers a cash back rewards program for debit card spending. If you’d like to earn cash back for everyday purchases but you don’t want to (or can’t) open a cash back credit card, the Upgrade Rewards Checking Plus is a simple solution.

Direct deposits of at least $1,000 each month makes you eligible to earn 2% cash back when using your debit card for:

• Convenience/drug store purchases
• Gas stations
• Monthly subscriptions (Netflix, Spotify, etc.)
• Restaurants (including eligible delivery services)
• Phone bill
• Utilities

You’ll also earn 1% cash back on all other purchases. With no monthly fees, all the cash back you earn is pure profit.

Best for a simple and reliable APY: Quontic High Interest Checking

Other high-interest checking account offers tend to require minimum balances, a complementary savings account, or multiple hoops to jump through. The Quontic High Interest Checking account combines simplicity with a respectable (though not outlandish) return rate.

You’ll earn 1.10% on all balances, no matter the size. The only catch is that you must make at least 10 qualifying debit card transactions totaling $10+ each month—otherwise, you’ll earn just 0.01%. You must also deposit at least $100 to open an account.

You won’t be charged any monthly or overdraft fees, either. However, if your account is left dormant for a month, you could incur a $5 fee.

Our methodology

TIME weighed a variety of characteristics in choosing the current best rewards checking accounts. We’ve taken into consideration current welcome bonuses, APY rates, accessibility, customer service, and hidden fees. We also factored in common restrictions that may prevent the average person from maximizing what at first glance would appear to be a top-notch offer.

Should you apply for a rewards checking account?

Most folks should absolutely apply for a rewards checking account. You’re almost certainly going to have a checking account anyway, so why not get rewarded for it? Opening a rewards checking account is one of the easiest steps you can take to put a bit of money back in your pocket without altering daily life.

Note that there are some downsides to rewards checking accounts, depending on the bank. You may be subject to stricter standards. For example, some may charge monthly fees—or even prevent you from opening an account at all—if you’re unable to maintain a high balance.

How to choose a rewards checking account

Return rate

The rewards you receive from your rewards checking account should be one of the most important factors in deciding which option is best for you.

Rewards checking accounts can work in various ways. You may earn interest daily based on your account balance. Or you may be provided a debit card that earns cash back for everyday spending.

Go for the account that’ll give you the biggest return for your situation. If you’ve got a massive account balance, it probably makes sense for you to focus on a high APY option.

Requirements

Among your favorite rewards checking account preferences, read the fine print to learn if there are any requirements you can’t meet. For example, some accounts stipulate that you receive a certain amount of money via direct deposit to earn a welcome bonus. Others may require that you keep a minimum account balance of $5,000 to earn the highest ongoing rewards rate. This could turn what seems like the best option into the absolute worst.

Restrictions

All bank accounts, rewards-earning or not, have unique restrictions that can impede the way you like to handle your finances. If you utilize ATMs regularly, research to see if there are in-network ATMs near you or if it participates in a national ATM network. If you’re in the habit of using paper checks, be sure that your prospective bank offers them.

Also ensure that the account doesn’t enforce a limit to the rewards it earns. For example, the account may earn 4% APY for balances up to $20,000—but just 0.1% for anything above that threshold.

Fees

Expect monthly maintenance fees, foreign transaction fees, paper statement fees, and more with rewards checking accounts. You must decide if you can avoid these fees altogether or if the rewards you earn are worth paying those fees.

How to apply for a rewards checking account

Opening a checking account is similar to applying for a loan, but not quite as probing. You’ll need to provide information such as:

• Proof of address, which can be a rent statement or utility bill
• Phone number
• Birth date
• Social Security number
• Photo ID

Most banks won’t perform a credit inquiry when approving you for an account, though they may examine your previous banking practices through an agency called ChexSystems. In other words, if you’ve got a history of bad habits (bounced checks or overdrafts), that could play a factor in being approved.

You’ll generally need to fund your bank account soon after you open it. Depending on the bank, you may have the option of using a credit card, check, or direct deposit.

Alternatives to rewards checking accounts

Credit cards

Rewards credit cards often come with welcome bonuses that are equal to (or significantly greater than) the bonuses you’ll receive for opening a checking account. You’ll even earn cash back or travel points for everyday purchases, which can add up in a hurry.

For example, the card_name comes with a bonus_miles_full. It also earns 5% cash back for your top eligible spending category (up to $500 each month, then 1%). Eligible categories include:

• Drugstores.
• Fitness clubs.
• Gas stations.
• Grocery stores.
• Home improvement stores.
• Live entertainment.
• Restaurants.
• Select streaming services ( Amazon Prime Video, Hulu, Netflix, Spotify, and so on).
• Select transit.
• Select travel.

You’ll get 1% back for all other eligible purchases.

High-yield savings accounts

If you’re looking for ways to profit from the money sitting in your bank account, consider opening a high-yield savings account. Savings accounts routinely offer exponentially higher returns than checking accounts—and you can simply open a checking account from the same establishment for the ability to instantly employ your money when you need it.

As an example, the Valley Direct offers a whopping 5.25% APY* with no required balance to start earning.

Money market account

A money market account is essentially a savings account with checking account features. It offers APY similar to what you’ll find with savings accounts, too. However, you may find that the best MMA interest rates are only available for those with big balances.

Quontic Bank’s money market account is currently one of the best, offering 5.00% APY with a $100 minimum deposit. You’ll even get a debit card with the account.c

TIME Stamp: Rewards checking accounts are an easy financial win.

You’re losing money if you don’t use a rewards checking account. As long as you don’t incur fees that offset your earnings, applying is a no-brainer. Find a rewards checking account that complements your lifestyle, and it’s the closest you’ll come to a free lunch.

Frequently asked questions (FAQs)

Are rewards checking accounts worth it?

Rewards checking accounts are worth it as long as they don’t prevent you from banking the way you normally do. If you like visiting a brick-and-mortar branch, even the most generous rewards account from a strictly online bank won’t deliver what you need.

What bank has the best checking account benefits?

The best checking account benefits depend on your preferences. However, if you’re apprehensive about trying rewards checking, you may benefit from an offering from Chase due to its customer service infrastructure alone. You can visit a nearby branch to speak face to face with a representative if you have questions.

What banks give you a bonus for opening an account?

Many banks offer welcome bonuses for opening a rewards checking account, including Axos, Chase, PNC, U.S. Bank, and more.

*APYs are subject to change. APYs are updated as of Dec. 1, 2023.