Most people in 2019 use checking accounts as the hub to operate their family’s personal finances. Personal checking accounts are essential, therefore you might as well earn interest on the money in your main checking account rather than not by using a high yield interest checking account in 2019 for your day to day personal and family banking needs.
High yield checking accounts are one of the safest and most risk-averse ways to invest and also generate reliable, passive income with your existing operational cash that is not being used for other investments or savings.
“Never let any dollar sit without return” is a core component of the Cashflow Cultivator philosophy, and that includes the money you operate your daily life from. Remember, every dollar is an employee.
Your checking account is the financial hub which you receive and allocate your cashflow to. You pay most of your bills from your checking account (hopefully you have this automated). You deposit your employer-based pay in your checking account. You pay for most of your other needs with your main checking account.
High-interest checking accounts are a must for your emergency fund or liquid capital holdings that are not otherwise invested in the stock market or another alternative investment.
Why have money that sits in a regular checking account, and does not earn interest, when there are numerous high-interest checking accounts available to you that will ensure a return on the money that you operate your life from, and do not have invested otherwise?
Most 2019 Checking Accounts Pay Little to No Interest
Most people have checking accounts at their local bank that they have usually signed up for in person at the nearest branch from their home for convenience purposes. They value the human interaction component of banking and the security of having the branch close enough to physically visit to build the trust they need to park and funnel their hard-earned cash.
Usually, these local banks offer little to no interest on the money in their personal checking accounts, yet the banks are using that capital for their own investments.
Many Banks Now Offer Higher Returns in 2019 With High Yield Interest Checking Accounts
Many other banks (online and branch based) now offer high interest checking accounts for their bankers. These high yield checking accounts have a better return than high yield savings accounts and CDs, although you will have to integrate a couple of minor behaviors, usually like 10 or more debit card transactions per month, and possibly a direct deposit set up.
Certificates of Deposits (CDs) and savings accounts usually do not require any additional steps such as direct deposits or debit transactions to achieve their premium advertised interest but offer a lower interest rate than these high interest checking accounts.
Do Your Due Diligence with High Yield Interest Checking Accounts in 2019
Upon considering, and before signing up for any checking account, it is smart and prudent to go to the FDIC website at http://fdic.gov and manually look up the bank you are currently researching to make sure the bank that you are considering is listed as being FDIC insured.
It is not good enough to trust a link in the footer of any banks’ website. Manually go to the FDIC website and look the bank under consideration up because your cash will be in the banks’ hands and FDIC insurance on your money is one of the most essential cautionary hedges.
Also, call the bank and make sure you always have a bank teller to talk to and that their customer service is satisfactory to you.
Are they knowledgeable and helpful on the phone?
Do they care about your questions and concerns?
Do they follow up when they can not answer any question?
Do they call you back?
Make sure you have a trusted partner in your banking needs by doing extreme due diligence on any bank you are considering.
Find the Right Bank to Trust and Stick with for the Long-Term
Some banks offer a high yield checking account but then after you sign up for a few months, the yield will change to a lower one. This is frustrating because it is work to get everything set up with a new bank.
Ask the bank how long their interest rate has been at its current yield, and how long do they expect it to stay there or get better. Ask what kind of calculation is considered for the yield.
Banking Requirements for Receiving the High Interest Advertised Yield
The requirements for a high-interest checking account are usually met by a certain number of debit card transactions. Usually about 10 to 15 depending on the bank.
Also, many banks require a direct deposit every month and for you to sign up with e-statements to receive the high yield.
Some other banks may have different caveats that you must consider as part of your ultimate decision to open a new high-interest checking account.
Some banks may have issues with locations they serve. You may live in an area that they will not serve even though they have online banking.
Each bank is different, so it is vitally important to do your due diligence for your ultimate decision on which banking firm to open your high-interest checking account with.
The Best High Yield Interest Checking Accounts in 2019
The banks below have rates that are at the time of January 1, 2019, and also have different criteria which you must research to get the effective rate.
Do your due diligence very meticulously for any financial consideration before executing on a new decision involving your finances.
Go to the bank’s websites and do your own research very meticulously. Read the fine print. Make sure they have FDIC insurance. Call the branch and verify the rates and caveats to each account.
Tab Bank Kasasa Cash Checking Account
4% APY on balances up to $50,000
Heritage Bank Ecentive Account
3.33% APY on balances up to $25,000
First Lockhart Bank FirstStar Rewards Checking
2.05% APY* on balances up to $15,000
Rbank Texas RBest Checking
3.00% APY on balances up to $10,000
America’s Credit Union Affinity Plus Checking
Affinity Plus earns 2.00% APY PLUS 10¢ back every time you use your debit card PLUS essential insurance. Why pay $13 dollars a month for cell phone coverage and another $10 per month for identity theft when we can use ACU’s cooperative buying power to get it all for $7 per month.
First Financial Credit Union High Interst Checking Account
Earn 2.05% APY* on balances up to $7,500
La Capitol Federal Credit Union Choice Plus
Choice Plus is the perfect personal checking account for households who use their debit card often. You’ll earn dividends at a whopping 4.25% Annual Percentage Yield (APY) on the first $3,000 of your balance and above market dividends on the entire first $10,000 of your balance
Blue Federal Credit Union Extreme Checking
Earn up to 4.00% APY* on balances up to $15,000
One American Bank Kasasa Cash
3.50% APY* on daily balances up to $10,000
High-yield Interest Checking Accounts Personal Story
I’ve always used a checking account with high-yield interest since I knew they were available. So I have years of experience with these types of accounts.
Overall, the experience has been great, but has been kind of slightly tedious at times because banks will change their rates, or I would find something better and have to set up a new account, fund it, set up direct deposit, set up a new debit card, use the card enough times, etc. It takes work to set up everything correctly, but in the long run, to me, it’s worth it.
Hopefully the high-interest checking account I am using now will keep it’s rates steady for a long time. If not, I will then adjust to a new bank. I may or may not close the previous account depending on if I will have to pay any fees for inactivity.
High Yield Checking Account Micro-action
Research high yield checking accounts and consider opening a new high interest checking account after you have done your due diligence by researching and verifying by manually going to the FDIC website and looking up the bank.
Move money incrementally in smaller amounts, test and operate it before putting more than you are comfortable with at first. The most important thing is to have your money working for you and for you to trust where your money is.
Call the bank and talk to their tellers to gauge how well they have their customer service streamlined.
High Yield Checking Account Risk Assessment
These high yield checking accounts have almost no risk if thoroughly vetted and properly operated. If you meet the required qualifications, you get the current premium high-interest yield on your money. If you don’t meet the qualifications, you get a much-reduced yield (like a low-interest checking account). However, you do not lose any money, so this financial hack can generate returns on your operational cash without the risk of losses.
FDIC insurance is a must for any checking or savings account. Make sure you have online access and phone access to bankers.
High Yield Checking Accounts Disclaimer
Your money is your responsibility. Cultivate Cashflow presents concepts and explores ideas for you to further research and ultimately after doing your own due diligence, decide if it is right for yourself.
Cultivate Cashflow is not a financial advisor or advisory firm. We are an education and lifestyle blog who document our own financial practices as teaching and entertainment content.
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