High-Yield Reward Accounts
UPDATED: 03/01/2022
Alright, ready to make even more money? I hope you have read our previous post: Bank Accounts with High-Yield Interest to receive great tips to fatten up your wallet. Now, let’s take it to the next level with these high-yield reward accounts. So what’s the difference between the bank accounts with high-yield and the high-yield reward accounts below? Just a few extra requirements that need to be met in order to “qualify” for the high rates. As you will see, once you meet these requirements, you will be able to earn a higher APY rate. That’s it. Let’s take a closer look at these:
OVERVIEW:
HMBradley is currently our all-time favorite bank and institution that we recommend to the families we serve to keep their extra cash. This is an online bank account that helps you earn up to 3.00% APY by rewarding you for how you spend and save. HMBradley wants to distinguish itself by rewarding what it calls "good behavior." In practice, this means higher rates for those who sign up for direct deposits and save a portion of it each month while also spending on with their credit card.
Simply put, consumers will need to meet the following 3 requirements:
1. $1,500+ monthly direct deposit. This could be one direct deposit per month or multiple…just has to be $1,500 or higher every month.
2. Save 20% of the total deposits going into the checking account every quarter.
3. Apply for HMBradley Credit Card. Spend $100 / month with that credit card.
Once you have that, you will earn 3.00% APY on up to $100,000 -- a whopping $250/month guaranteed earnings. This is easily one of the top rewarding accounts in the industry right now, especially considering the easy-to-meet requirements named above.
For example, if you have a $1,500 monthly direct deposit (withdraw $1,000) and save $500 per month, you’ll receive 3.00% APY interest on your entire balance (up to $100,000). The goal is to save 20% of your total deposits every month; if you are able to split your employer direct deposit, you can save $750/paycheck (assuming you are getting paid twice a month) and immediately withdraw $600 which would make it easy to save 20% of that in the account.
RECAP:
Earn 3% APY as long as you have a direct deposit into the account AND save at least 20% of the deposits while spending $100/month with their credit card. Everything earns 3% on up to $100,000.
OVERVIEW:
One Finance is another fintech banking solution and HMBradley’s arch-nemesis. The bank account comes with three core Pockets Plans: Spend (a checking account equivalent), Save (a savings account equivalent), and Auto-Save (a unique savings account that automates saving every time you spend).
The Save and Auto-Save savings account interest rate offers the following:
1% APY on up to $5,000. If you have a qualifying paycheck direct deposit, the limit is $25,000.
Earn 3% APY on the separate Auto-Save account. The way it works is you designate between 1 – 10% of your paycheck to go to this account and earn the 3% interest rate. Max of $1,000 per month can be added to the 3% Auto-Save account. (You can also have any purchases on the One Finance linked debit card get rounded up and deposited to the 3% account. These roundups have no limit.)
RECAP:
Earn 3.00% APY on up to $1,000 / month on the auto-save account.
Earn 1.00% APY on up $5,000 (unless you have a direct deposit, if so, it goes up to $25,000) on the regular savings account.
THE CATCH?
This account has a great interest rate, but it’s pretty difficult to have a meaningful balance that earns the best rate of 3.00%. However, this account will be the best for beginners or those getting started in their savings journey.
The biggest issue that I have with One Financial is that the bank does not offer a beneficiary designation. Unfortunately, the accounts DO NOT have the ability to designate an individual to receive funds for you in case of death. A rep simply writes back that they will comply with the requests from the executor of your will or power of attorney. Yikes!
OVERVIEW:
Western Vista Credit Union is a local community bank based in Cheyenne, WY that offers its services nationwide. The credit union has a high interest checking account with 2.53% APY on balances up to $15,000 when you have 10 debit card transactions on your account each month. Must also be enrolled in eStatements and have a direct deposit.
The Panorama Checking rewards account is a free account that offers 2.53% APY. Additionally, you’ll get $25 in ATM fee refunds every month. To get the special rates you just simply have to swipe 10 debit card transactions each monthly statement cycle (excluding ATM transactions), of $5.00 minimum purchases, and receive your bank statements by email.
RECAP:
Earn 2.53% APY on up to $15,000 by meeting easy-to-meet monthly requirements.
REQUIREMENTS:
Enrolled in eStatements
Swipe 10 debit card transactions per month, spending $5 or more with each transaction
Have a Direct Deposit from your employer. It could be just $100/paycheck.
THE CATCH?
You have to make sure each debit card transaction is $5 or more. The easiest way to meet this requirement is by simply automating this transaction/purchase. I recommend that you set up an auto-daily purchase of $5.00 into your Amazon account for the first 10 days of the month. By doing this, you won’t have to worry about how many times you’ve used the card or have to keep track of the transactions.
OVERVIEW:
Presidential Bank is a local community bank that offers the Checkless Checking account with 2.25% APY on balances up to $25,000 when you have 7 transactions (debit card usage, ACH/bill payment withdrawals, etc) on your account each month. Must also have a monthly direct deposit of at least $500.
Amounts greater than $25,000 earn 0.40% APY. Accounts that do not meet the deposit or withdrawal requirements will earn a lower rate as disclosed on the rate schedule. Deposit and withdrawal requirements are waived for the first month. The posting dates are used to determine transaction qualifications.
RECAP:
Earn 2.25% APY on up to $25,000 by meeting easy-to-meet monthly requirements.
REQUIREMENTS:
$500/month direct deposit.
Swipe 7 debit card transactions per month
THE CATCH?
There isn’t one. Remember, these “high-yield reward” accounts are able to offer a higher interest rate because of the requirement that is agreed upon with the consumer. If you are not able to meet the requirements, you simply don’t get the higher interest rate. For those that are able to track their transactions every month, this account is beneficial and should be considered.
