About 96% of Americans have a bank account, according to the FDIC’s latest data. and many people have both a checking and a savings account. Sometimes, though, there may be advantages to what is considered a hybrid account, offering the best of both worlds (or at least some of the benefits of each).
For instance, you might enjoy the ease of access that you get with a checking account, thanks to a debit card. And you might also earn a higher interest rate, the way you might with some savings accounts vs. checking.
Financial institutions may offer different versions of hybrid accounts. Read on to learn about some of the most common features so you can decide if a hybrid bank account is right for you.
Key Points
• Hybrid accounts combine checking and savings features for convenience.
• They typically provide debit card access and higher interest rates than standard checking accounts.
• Online banks frequently offer hybrid accounts with better terms.
• Regularly review account statements to avoid negative balances.
• Hybrid accounts can help manage finances more efficiently.
Defining the Hybrid Account
There are a variety of bank accounts available to consumers. And the type of accounts people are drawn to will depend on their financial goals, situation, and how they choose to organize their finances.
A hybrid account can merge the features of both checking and savings accounts. Here’s a bit more about hybrid accounts:
• A hybrid account is one that combines the perks of a checking account with features of an interest-bearing savings account. Instead of linking your checking and savings account, they’re basically functioning as one cohesive account.
• A hybrid account allows access to your money on a day-to-day basis, like a checking account would. That can mean that you may get a debit card to use with it.
• On the flip side, it allows your money to grow the way it might in a savings account.
Of course, every financial institution is different, and each might have a different approach to crafting a hybrid bank account. But the main gist of a hybrid account is that it’s a bank account that bears some resemblance to a day-to-day checking account and a long-term savings account.
Recommended: Ways to Manage Your Money
Different Types of Accounts
To understand what can make a hybrid account a useful tool, it’s helpful to first understand the features and pros and cons related to traditional checking and savings accounts and then compare.
Checking Accounts
Checking accounts usually allow you to deposit money, write checks, or use a debit card to pay for goods and services. There are typically no withdrawal limits, and you can often link a checking account to other accounts and credit cards. It might be the account you use to pay recurring bills each month, like a car loan or student loan payment.
Banks, especially online banks, may pay you interest on the money that sits in your checking account. However, regular checking account interest rates are typically low, with an average rate of 0.08% as of October 2025.
These rates don’t always catch up with the national inflation rate, which is currently about 2.92%. That means your money is actually depreciating in value while it sits in the account. In the long term, this may not make checking accounts a particularly good place to park a lot of cash.
Checking accounts may also charge fees for the services they offer, such as monthly maintenance fees.
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Savings Accounts
Savings accounts are another type of deposit account that you can open with your financial institution of choice. They usually earn some interest, with the current standard savings account earning about 0.40%.
However, high-yield savings accounts are an alternative to traditional accounts; they may sometimes offer interest rates of 4% or more. Higher-interest savings accounts can help you beat inflation so your money doesn’t lose value by growing at a slower rate than inflation. You may find these accounts offered at online banks vs. traditional ones.
Savings accounts are generally appealing because they are a separate place to store money you don’t necessarily want to use on day-to-day expenses. For example, it could be a good place to keep your emergency fund or even to save for a vacation or a move across the country. (Using an emergency fund calculator can help you figure out how much to save.)
However, there are some downsides to savings accounts, too. A few to note, which may or may not apply to only the high-interest variety:
• They sometimes don’t allow consumers to use them for direct payments.
• There may be restrictions on the number of savings account transactions you initiate every month.
• There may be restrictions such as a balance cap that sets a limit on the amount of money on which you can earn a high rate.
• There could be a minimum opening deposit and ongoing balance requirements to earn the higher interest rate. Or, if you fail to meet the amount, you might be assessed a minimum balance fee, which could offset the extra interest you’re earning.
If you’re considering this as an option, you may want to look closely at the fine print when choosing your savings account.
Hybrid Accounts: The Details
Hybrid bank accounts will often take benefits from checking and savings accounts and combine them into one account. A hybrid account may allow you to use checks or a debit card for day-to-day transactions, while still offering the interest rates typically associated with a savings account. Hybrid bank accounts are often more likely to be offered by online vs. traditional banks.
Traditional brick-and-mortar banks must pay for their storefront locations, the people who staff them, and ATMs. They may do so by charging more and/or higher fees and paying lower interest rates, while online banks can often afford to drop fees and pay higher rates.
You may hear the term money market account (or MMA) used by some financial institutions when describing their hybrid accounts. Keep in mind that this is different from a money market fund, which is a type of investment.
Whichever kind of account you choose, see what kinds of tools and resources (such as budgeting apps) are offered that can enhance your money management, and also check in with your money on a regular basis.
The Takeaway
A hybrid bank account typically combines the features and advantages of both a checking account and a savings account. For instance, you might have the convenience of debit card usage and check-writing privileges (typical of checking accounts) along with the higher interest rates usually offered by savings accounts.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What is a hybrid account in banking?
Hybrid bank accounts combine the features and benefits of checking and savings accounts into a single account. For instance, it may offer checks and/or a debit card, which are usually features of a checking account, along with the higher interest rates typically delivered by a savings account.
What are the four main types of bank accounts?
Usually, the four main types of bank accounts are considered to be checking, savings, and money market accounts (which are a kind of hybrid account), as well as certificates of deposit.
What bank account can you not withdraw from?
The type of bank deposit you typically don’t withdraw from is a certificate of deposit (CD), which is a term account. If you do pull your money out before the end of the term, you usually pay an early withdrawal penalty. Some CDs allow for early withdrawal, but they likely pay a lower interest rate.
SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet
Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.
Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.
Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.
See additional details at https://www.sofi.com/legal/banking-rate-sheet.
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