Is a High Interest Checking Account Right for You?

Is a High Interest Checking Account Right for You?

January 11, 2023

Tagged As: Personal

Combining the convenience of a checking account with a return similar to a long-term certificate of deposit (CD), our High Interest Checking Account lets you earn money while using your funds for everyday spending. 

By meeting a few simple requirements, you can achieve a 2.00% annual percentage yield (APY) on balances up to $10,000*. 

Learn more about our High Interest Checking Account 

But is our High Interest Checking Account right for your banking needs? Here’s what you need to know about account requirements, making the most out of your money, managing multiple accounts, and more. 


Our High Interest Checking Account does not require a minimum balance to open. However, to earn the highest interest rate and avoid paying a maintenance fee, you’ll need at least 25 debits or withdrawals from the account (such as debit card purchases, ATM withdrawals, ACH activities, wire transfers, or automatic bill and/or loan payments**) each monthly statement cycle. You’ll also need deposit(s) into the account totaling $1,000 or more per month. 

Once you meet these requirements, your $10 monthly basic service fee will be refunded and you’ll be qualified for a 2.00% interest rate on your High Interest Checking Account balance up to $10,000. 

  Interest earned on qualifying account balance   
Balance Annual Percentage Yield (APY)  Interest Rate 
$0 - $10,000  2.00% 1.98%
$10,001 & over  0.05% 0.05%

Still interested in high-interest checking? Here are a few things you should consider. 

How you use your checking account? 

If you regularly use your checking account for the following tasks, you could benefit from a High Interest Checking Account: 

  • Paying for everyday purchases with your debit card 
  • Withdrawing cash from ATMs 
  • Writing checks or utilizing automated payments for bills, loans, rent and utility payments, etc. 

Credit card purchases and transfers between accounts do not count toward the 25 debits or withdrawals required to qualify each month, which can create a dilemma for those who regularly use a credit card with a rewards or cashback program. 

Credit card rewards vs. high interest checking 

Between travel points, cash back, and specialized rewards, credit card providers offer a variety of incentives to encourage purchases made on credit. But depending on how much you spend, you could earn significantly more from the funds in your High Interest Checking Account by using your debit card instead. 

You’ll need to account for rewards like travel points or specialized offers like discounts at retail stores. But with a 2.00% APY on your account balance up to $10,000, you could earn more by making 25 debits per month using your High Interest Checking Account.

What if you have another account?  

You can have a High Interest Checking Account and another (or several) checking or savings accounts open with Hills Bank simultaneously. You can also convert an existing checking account to a High Interest Checking Account just by speaking with a banker. But like weighing the pros and cons of a credit card and high interest checking, it’s worth considering how your current checking or savings account suits your financial needs before opening a High Interest Checking Account. 

Generally speaking, you’ll want the High Interest Checking Account to be your primary checking account in order to meet the monthly deposit/withdrawal requirements. And naturally, the more money you have in the account, the more you’ll get back in interest (with one caveat: you’ll receive 2.00% APY on your balance up to $10,000, and .05% on amounts beyond that). 

Our personal bankers can help you determine the best solution for your financial needs. You can start a conversation with a banker right now by using the chat button below! 

Opening a High Interest Checking account 

If you have more questions about whether a High Interest Checking Account is right for you, just stop by any of our locations to visit with a personal banker, or start chatting with a banker on

Ready to open a High Interest Checking Account now? 

Apply Online

We hope to start earning you interest soon! 

*APY effective 5/25/2023. Rate may change after the account is opened. Fees may reduce earnings. 
**Does not include transfers between accounts