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- The Federal Reserve has cut interest rates by a total of 75 basis points in its last two meetings.
- In response, rates on savings accounts and CDs have fallen from past levels.
- High-yield checking accounts still offer rates as high as 8% APY — but they come with a catch.
The Federal Reserve made another interest rate cut at its November meeting, following an even bigger rate cut in September. His September meeting marked the first time the Fed had cut rates in several years. As a result, high-yield savings accounts and CDs have seen their rates drop from previous levels.
High-yield checking accounts haven’t seen the same rate drop as savings accounts and CDs. In fact, you can get a high-yield checking account that pays up to 8% annual percentage yield (APY) right now. High-yield checking accounts can offer high rates like this despite Fed cuts because the rates generally come with restrictions and strict requirements. However, if you’re interested in opening a primary checking account and have a certain amount of money that you don’t mind spending, a high-yield checking account may be a good choice for you.
How to Earn 8% APY on BCU PowerPlus Checking Account
The best rate you can get on a high-yield checking account is offered by a credit union anyone can join: BCU.
The BCU PowerPlus Checking Account comes with a high interest rate of up to 8.00% APY, but only on the first $15,000 in your account and only if you meet strict requirements.
It is a tiered interest account; your checking account can be either Tier One or Tier Two. Tier One accounts earn a base rate of 2.00% APY on the first $15,000, while Tier Two accounts earn a base rate of 4.00% APY on the first $15,000.
To get a Level One account, you’ll need to have at least $1,000 in direct deposits and make at least 15 transactions (like debit card purchases) each month, along with signing up for eStatements. To get a Level Two account, you’ll need to have at least $3,000 in direct deposits and at least 30 transactions per month, along with eStatements. For both Tier 1 and Tier 2, you’ll make 0.01% APY on any money over $15,000 you deposit into your account. If you do not meet these requirements, you will not earn any interest.
If you’re a new member who opens an account before December 31, 2024, you’ll be able to double the interest rate on the first $15,000 in your account. This means new Tier One members will earn 4.00% APY, and Tier Two members will earn 8.00% APY, the highest tier. However, you will only be able to earn that fee for three months. After that, you will earn the base fee for your account level.
You may only have one BCU PowerPlus Checking account per member. The easiest way to become a BCU member is to subscribe to Life. The money. Ju., a free program hosted by BCU. You can also join by living in certain parts of Illinois, Wisconsin or Puerto Rico, working for a select group of employees, or being a family member of someone who already banks with the credit union.
Other strong high-yield checking account options
If you don’t think you can meet BCU’s strict requirements, or if you don’t want to open a checking account for just three months of high interest, you can consider one of the other high-yield checking accounts that offer good rates. We’ve listed some of the options from the best banks and credit unions for high-yield checking accounts, along with their highest APY requirements, to help you choose the right account for you.
Not every savings goal will work well in a high-yield checking account. If you don’t want to accidentally spend your savings, or if you don’t want to keep up with strict earning requirements, a high-yield savings account may be a better choice, even if you can’t earn as much interest. If you want to lock in a high rate for a long period of time—and don’t mind losing access to your funds for a while—a CD can also be a good fit.