

Rewards checking accounts allow you to earn points, cash back or interest on your everyday banking activity. Depending on the bank, earning rewards may require an existing bank relationship, set debit card usage or a monthly direct deposit.
Rewards checking accounts allow you to earn perks on your everyday banking activity. Depending on the bank, you could earn points, cash back or interest just by using your debit card, making direct deposits or keeping a balance in your account. Rewards vary and you may have to meet certain requirements to qualify. Here's what you need to know about rewards checking accounts and how to open one.
A rewards checking account is a type of checking account that offers incentives on your checking account activity or balance. Instead of just being a place to manage bills and spending, this type of account allows you to earn something in return.
Depending on the bank, you may be able to earn rewards as points on eligible debit card purchases or interest earned on your balance. You may have the option to redeem rewards for a deposit into your account, transfer to another rewards account and more.
To access rewards, you may need to meet certain requirements.
You may be able to earn more rewards based on other account activity. For instance, you may have the option of earning rewards on your checking account balance, debit card purchases and loan payments.
Tip: Rewards checking accounts offer ongoing rewards. These are different from bonus offers you may receive for opening a new account and meeting other requirements.
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Rewards checking accounts come with both benefits and drawbacks. It's important to consider both as you decide whether this type of account will work for you.
Cash back or interest earnings: Earning rewards on a checking account essentially means you're getting paid for spending or banking as usual.
Combined rewards across accounts: Some banks allow you to combine your checking account rewards with credit card rewards, which can help you maximize the overall value of your rewards.
Accessible to more consumers: Unlike rewards credit cards, checking accounts don't require a good credit score. You'll need a positive checking account history, however. Banks may check for previous unpaid overdrafts or account closures by viewing your ChexSystems report.
Lower risk of debt: Since you're using your own money, you can earn rewards without the temptation to overspend and go into debt. While overdrafts are still possible, they're usually less costly and more limited than running up a credit card balance.
No or low fees: Many banks have no fees or waive monthly maintenance fees if you meet activity requirements, so you can earn rewards without added costs.
Complex earning structure: Rules can vary significantly between banks and tracking requirements can be inconvenient.
Account requirements: Failing to meet the requirements could mean you miss out on rewards for that month or that you end up paying account fees.
Limited rewards: Unlike credit card rewards programs, checking account rewards are often capped. For example, you may only earn interest on balances up to $5,000.
Less availability: Rewards checking accounts aren't standard at many banks. Those that do offer these accounts may only be available online or through credit unions.
Learn more: How Do Rewards Debit Cards Work?
A rewards checking account can be worth it if the rewards are simple to earn and redeem. It's a smart way to earn rewards and avoid credit card debt. Plus, if you consistently meet the requirements anyway, it's a way to boost earnings on money you keep in your checking account.
However, if the rules feel too complicated or rewards are limited, you may get more value from these other types of accounts:
Learn more: Do Checking Accounts Earn Interest?
Opening a rewards checking account is fairly straightforward and works much like opening a standard checking account.
Rewards checking accounts are one way to get more value from your everyday banking, allowing you to earn rewards without the risks of credit card debt. Before opening one, check to see whether you can meet the earning requirements and estimate your earning potential. Earning rewards or interest from other options may offer better returns for your typical financial habits.
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Compare accountsLaToya Irby is a personal finance writer who works with consumer media outlets to help people navigate their money and credit. She’s been published and quoted extensively in USA Today, U.S. News and World Report, myFICO, Investopedia, The Balance and more.
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