Frugal Joe

High-yield checking accounts let you earn interest on your money while giving you the flexibility of a traditional checking account.

It used to be that people had to pay monthly fees just for having a checking account. Then banks started waiving those fees as long as their customers carried a minimum balance in their accounts. Soon after that, banks also offered to waive fees if their customers set up direct deposit or used their ATM cards more often.  However, one thing that didn’t change was the fact that checking accounts necessarily paid little or no interest.

Fortunately, that’s changing now as well. More and more banks are offering so-called high-yield checking accounts that will let you earn more interest. Many of these high-yield checking accounts are in fact competitive with most savings accounts.

The banks that offer high-yield checking accounts are often the same banks that also offer high-yield savings accounts.

Here’s a list of some of the banks that provide high yields on a consistent basis:

-  ING Direct Electric Orange Account

-  HSBC Direct Online Payment Account

-  E-Trade Bank Max Rate Checking Account

-  FNBO Direct Online Billpay Account

-  Liberty Bank  eSmart Checking Account

-  Keystone Bank Keystone Reward Checking

Furthermore, there are many small regional banks and credit unions that on occasion offer even better rates. You can call around to compare rates in your area. It’s useless to state rates here because they change periodically.

Just visit their websites and check for yourself. You can also go to the websites of other commercial banks such as Bank of America, Citibank, and Chase to compare their rates. It will almost certainly be an eye-opening experience.

Photo Credit: CarbonNYC

Related posts:

1. Best High-Yield Savings Accounts