The dismal rate environment for depositors has lingered for over five years now. But there are still financial institutions offering yields of 2% or more on federally-insured liquid deposits (not CDs), according to a new Bankrate.com report.
Bankrate recently surveyed 56 high-yield checking accounts offered by U.S. banks, thrifts and credit unions. The average annual percentage yield for these accounts was 1.57%, nearly twice the average APY offered by the typical five-year certificate of deposit (0.80%) and more than 26 times the average yield offered on standard interest checking accounts (0.06%).
All of the high-yield checking accounts that Bankrate surveyed are federally insured by the FDIC or NCUA. And, of course, unlike a five-year CD, a high-yield checking account is completely liquid.
| Rank | Top High-Yield Checking Accounts in the U.S |
Nationally Offered? |
APY | Monthly Debit Transactions Required |
Balance Cap |
|---|---|---|---|---|---|
| 1 | BECU | N | 4.07% | 1 | $500 |
| 2 | Jeff Davis Bank | N | 3.25% | 10 | $10,000 |
| 3 | Consumers Credit Union | Y | 3.09% | 12 | $10,000 |
| 4 | Ouachita Independent Bank | N | 3.01% | 12 | $15,000 |
| T-5 | Great Lakes Credit Union | Y | 3.00% | 10 | $10,000 |
| T-5 | Lake Michigan Credit Union | Y | 3.00% | 10 | $15,000 |
| 6 | Coulee Bank | N | 2.55% | 10 | $15,000 |
| 7 | Belvoir FCU | N | 2.53% | 15 | $15,000 |
| T-8 | Bank of the Wichitas | Y | 2.50% | 10 | $10,000 |
| T-8 | Lee Bank | Y | 2.50% | 12 | $15,000 |
| T-8 | CapEd FCU | Y | 2.50% | 12 | $10,000 |
| 9 | BankTexas | N | 2.25% | 10 | $7,000 |
| 10 | Cross Keys Bank | Y | 2.05% | 12 | $10,000 |
All 56 high-yield checking accounts mandate electronic statements and many require direct deposit. Other typical requirements include a certain number of debit card transactions, online bill payments and/or automated withdrawals each month. The specific details vary by account. Meeting the requirements is very important because the average yield drops to 0.06% if the monthly mandates are not satisfied.
Even if the accountholder meets all of the requirements, the 1.57% average yield applies only to a certain limit, known as the balance cap. The most common balance cap is $25,000, but the highest-yielding accounts tend to have lower balance caps. None of the 15 highest-yielding accounts are available nationwide with a balance cap over $15,000.
Half of the high-yield checking accounts that Bankrate surveyed are available nationwide (including 12% that require a charity contribution, a family member’s credit union membership or an in-branch signature).