High-yield reward checking.
In plain English
High-yield reward checking, sometimes called reward checking, is a checking account that pays a well-above-average interest rate, but only if you meet monthly requirements, typically a set number of debit card purchases, at least one direct deposit, and enrolling in e-statements. Miss the requirements and the rate drops to almost nothing that month. The high rate usually applies only up to a balance cap, above which the rate falls. It can beat a savings account for an active spender who meets the terms, but the hoops and caps make it worthwhile only if you actually hit them each month.
01Why it matters
Reward checking can out-earn a savings account, but only if you meet every monthly condition and stay under the balance cap, so the terms decide whether the high rate is real for you.
02The math, step by step
An account pays 5 percent on balances up to 10,000 dollars if you make 12 debit purchases and one direct deposit a month. Meet the terms and 10,000 dollars earns about 500 dollars a year; miss them and it earns almost nothing.
03What this is NOT
High-yield reward checking is NOT an unconditional rate. The advertised yield applies only when you meet the monthly requirements and stay under the balance cap; otherwise it pays almost nothing.
04Receipts
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