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Make the Switch to Free Checking

Spend, earn and save in one account.

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Please note, membership is required to open a Checking or Savings account with DCU. Click here for more information about membership eligibility.

High-Yield Checking vs. High-Yield Savings

We know you work hard for your money and want to make the most of every dollar. One way to make every dollar count is to make sure you deposit your funds into the right accounts that work for you. High-yield checking and savings accounts both provide the opportunity to earn interest on your funds. But there are some differences between the two that you’ll want to be aware of before you open an account.

What Is High-Yield Savings?

It doesn’t matter what your income level is – everyone needs to have some savings tucked away for an emergency. High-yield savings accounts can be used as an emergency fund or for setting aside money for future use, such as a vacation, car, or other major purchase. High-yield savings accounts traditionally pay a yield that’s higher than average, which helps you reach your financial goals faster.

High-yield savings accounts are ideal for people who want to take a hands-off approach to their savings. Withdrawals from a high-yield savings account could be limited to six per statement cycle. This is the biggest difference between high-yield savings accounts versus high-yield checking accounts – the ease and convenience of accessing your money. In addition, high-yield savings accounts don’t typically come with extras like debit cards or electronic bill payment.

What Is High-Yield Checking?

A high-yield checking account is exactly what its name implies: It’s a checking account that has an annual percentage yield (APY) that’s significantly higher than those of standard checking accounts. A traditional checking account typically does not offer any interest. Though account terms vary by financial institution, withdrawals from a high-yield checking account are often unlimited, giving you quick and easy access to your funds when you need them. However, some banks may require that customers agree to certain conditions in order to qualify for the highest interest rate (such as maintaining a minimum balance or number of debit transactions each month). 

Save and Earn with DCU

At DCU, we offer competitive rates on Primary Savings and Free Checking accounts. Our Primary Savings account offers a higher APY than all of the big banks on balances up to $1,000. And by activating the Earn More feature on a Free Checking account, you can earn 0.50% APY* on balances up to and including the first $100,000.

If your checking account is at a big bank, chances are you’re paying big fees or getting little in return for the high minimum balance you’re required to maintain. But, if you’re using a Free Checking or Savings account from DCU, you don’t need to worry about monthly payments, fees, or hidden charges. And by qualifying for Plus or Relationship member status, you can get even more from your DCU membership, including ATM fee reimbursement, getting paid up to two days early with direct deposit and rate discounts on most consumer loans.

*An interest rate of 0.50% will be paid on your daily balance up to and including the first $100,000.00. The Annual Percentage Yield (APY) for this tier will be 0.50%. Balances over $100,000.00 will not earn interest. The APY on balances over $100,000.00 will range from 0.50% to 0.05% depending on the total account balance. For example, a balance of $100,000.00 will earn an APY of 0.50% while a balance of $1,000,000.00 will earn an APY of 0.05%. Rates are variable and may change from time to time after the Earn More feature is added to an account. Funds earn interest from the first of the month in which the feature is activated. The feature becomes activated the first of the month following the month enrollment took place. The Earn More feature can only be added to one checking account per membership, excluding HSA Checking accounts. Fees or other conditions may reduce earnings. Rate is accurate as of April 1, 2020.

Please note, membership is required to open a DCU Checking or Savings account.

This article is for informational purposes only. It is not intended to serve as legal, financial, investment or tax advice or indicate that a specific DCU product or service is right for you. For specific advice about your unique circumstances, you may wish to consult a financial professional.