Why you should open a high-yield checking account

Imagine being able to have your money earn interest without having to lift a finger. No, we’re not talking about the stock market. Instead, we’re talking about the incredible power of a high-yield checking account. In this article, we’re going to dive deep into the benefits of a high-yield checking account and why you should consider opening yours at One.


What is a high-yield checking account?

A high-yield checking account is a checking account that has a higher annual percentage yield than a traditional bank’s standard checking account. This type of account can be highly beneficial because the average bank checking account often offers little to no interest and minimal to no account benefits. But, on the other hand, One’s high-yield checking accounts provide a myriad of benefits, automated tools (along with higher interest rates) that you simply can’t get anywhere else. 


How do high-yield vs. a CD vs. a money market accounts compare

A Certificate of Deposit (CD) is a fund that ties your money up anywhere from three months to five years. The concept behind a CD is that it’s a risk-free way to store FDIC-insured money. However, what separates it from a high-yield checking account is that you have to pay a penalty fee if you pull your money out earlier than the predetermined timeline. This reason alone can make CDs less desirable than a high-yield checking account. It’s also worth mentioning that CDs can potentially automatically reinvest if you don’t withdraw it once your term date ends. 

However, some traditional banks are trying to alleviate CDs by creating “penalty-free” CDs. They are known as Liquid CDs and allow you to withdraw a portion of your CD investment before it fully matures. To get the most out of a CD, you must be comfortable putting a large sum of money into an account and not having access to that money for a long time. 

Another similar account style is a MMM or money market account. It also has rules and restrictions on how often you can withdraw your money from the account. Unlike a high-yield checking account which puts no limit on how often you withdraw, MMAs can limit your withdrawals to six times per month.


One account automatic savings rate vs. traditional bank savings rate


Over 10 years, $5,000 at .03% APY will earn…

  • $15.02 in interest at a traditional bank  

Over 10 years, $5,000 at 3.00% APY* Auto-Save will earn…

  • $1,746.77 in interest at One 


Opening a high-yield One account can help you…

  • Reach savings goals faster
    If you’re considering opening up a high-yield checking account but still aren’t entirely convinced, hear us out on our example scenario. Person A puts $1,000 into a regular checking account. On average, a traditional checking account’s annual percentage yield (APY) is just around .03% APY in the United States. That means that you’d have only gained $1.50 in interest after five years. Now, let’s say Person B opens up a high-yield checking account at One, which offers one of the best high-yield checking account rates a person can get. Person B would automatically earn 3.00% APY* on their same $1,000 into their high-yield checking account in their Auto-Save Pocket, resulting in $161.62 interest earned in the same five-year period.


  • Build healthy financial habits
    The other major benefit is it will incentivize you to build healthier financial habits. By stashing your money away automatically, you’ll be rewarded with a high-interest rate and a better return on your money. What makes a high-yield checking account great is that it can skyrocket your balance without you having to lift a finger. It also helps that you don’t have to go through the learning curve of investing to reap the benefits of the returns on a high-yield checking account. 


  • Build emergency saving automatically
    It’s worth mentioning that it can be a great way to build your emergency savings. We’ve all been in situations where we’ve gotten a flat tire, an unexpected medical bill, or needed to cover a living expense. But, if you’ve built up your savings slowly (and automatically), you’ll have a well-padded emergency Pocket inside your high-yield checking account.

The perks of opening a high-yield checking account are endless. It’s very similar to opening a savings account, just with extra benefits and no fees. You still get to save, but you’ll receive a higher APY rate on your money. So don’t underestimate the power of a high-yield checking account. 



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