A checking account generally serves as the hub of your daily financial life. It provides a secure and convenient place for your income to enter and for your daily and monthly expenses to leave. While some checking accounts serve only basic functions, some go a step further. Called “rewards checking,” these accounts may offer perks like interest on your balance, cash back on purchases you make with your debit card, or both.
While these accounts can be appealing, they come with some caveats. You might face limits on how much you can earn and be required to meet certain criteria (such as maintaining a high balance or enrolling in direct deposit) to qualify for your rewards.
To help decide if a rewards checking account is right for you, here’s a closer look at what they are, how they work, and their pros and cons.
Key Points
• A rewards checking account provides incentives for meeting specific banking requirements.
• Primary benefits include higher interest rates, cash back, and ATM fee reimbursements.
• Conditions to earn rewards may involve minimum transactions, balance, and direct deposits.
• Potential drawbacks are reward limits, minimum balance requirements, and possible fees.
• Consider the rewards, limits, fees, and your ability to meet requirements when choosing this type of account.
What Is a Rewards Checking Account?
A rewards checking account is a type of checking account that offers incentives or perks to account holders in exchange for meeting certain requirements. These perks can include higher interest rates, cash back on purchases, or other benefits like ATM fee refunds.
To qualify for the rewards, users typically need to meet certain conditions, such as making a set number of debt card transactions per month or having at least one direct deposit or automatic payment per month. If you don’t meet the requirements, you might earn a lower interest rate or earn no rewards for that period.
How Does a Rewards Checking Account Work?
Some checking accounts with rewards have criteria for earning perks each month. For instance, a bank may require you to:
• Use your debit card for a minimum number of transactions each month.
• Maintain an average minimum account balance.
• Receive a set number of direct deposits equal to a specified value.
• Enroll in services like e-statements or online bill pay.
If the reward is a higher annual percentage yield (APY), you will likely earn that in the form of monthly interest on your bank’s payment schedule, deposited directly into the account. If the checking reward is cash back, the bank may offer multiple ways to redeem the cash within the mobile app. Similar to cash-back credit cards, you can often convert points into airline miles or other perks — or just receive cash in your account.
Perks of a Rewards Checking Account
The perks of a rewards checking account will vary by bank but might include:
Cash Back
Cash back is usually expressed as a percentage of the transactions made with a debit card; this might also be structured as points or even airline miles.
Interest
While basic checking accounts generally don’t pay much or any interest, a rewards account may be an interest-bearing checking account. If so, it will typically offer an APY that is higher than the zero or the very low rate usually offered by traditional checking accounts.
Signup Bonus
A rewards checking account may pay a one-time bonus for signing up for a new checking account and meeting specific criteria.
ATM Fee Reimbursement
A rewards account may offer refunds for expenses incurred for using out-of-network ATMs.
Other Perks
Among the other rewards you may see offered are ways to earn airline miles, shopping discounts, cell phone insurance, and identity theft protection, among other options.
Some rewards checking accounts may offer a combination of these perks.
Who Should Use a Rewards Checking Account?
A rewards checking account can be a good option if you regularly use your debit card for purchases and keep a substantial amount of money in your checking account. If you do not have a rewards credit card, a rewards checking account can serve as an alternative way to earn money for spending money.
As mentioned, some banks have special requirements for members to earn rewards. Read terms and conditions carefully. If you cannot meet account requirements for the reward, the account might not be right for you, especially if there are monthly maintenance fees.
How to Qualify for a Rewards Checking Account
Qualifying for a rewards checking account may vary depending on the bank, but, as mentioned, there tend to be common core requirements for earning rewards, such as:
• A minimum number of debit card transactions in a month
• An average daily minimum account balance
• A minimum number (or value) of monthly direct deposits
If an account comes with a signup bonus, the bank likely has a set of requirements you’ll need to meet to snag that cash. This may include enrolling in direct deposit to get you started.
When considering a rewards checking account, it’s wise to read the fine print before opening to ensure you fully understand the requirements.
Pros of Rewards Checking Accounts
Here are some of the benefits of opening a rewards checking account:
• Earning potential: Whether through a higher-than-average APY or through cash back on debit card purchases, the main draw of a rewards checking account is often earning money (or more money) for doing the banking you would do anyway.
• No annual fee: Unlike some rewards credit cards, rewards checking accounts generally do not charge an annual fee.
• ATM fee reimbursements: Many rewards checking accounts will refund all or some of the fee you may be charged when using an out-of-network ATM. This can be valuable if you frequently travel outside your bank’s network.
Recommended: How to Manage Your Money Better
Cons of Rewards Checking Accounts
Rewards checking accounts also come with some potential downsides. Here are some to keep in mind:
• Limits on rewards: Some bank programs cap the rewards at a set amount each month, meaning there could be a limit to the amount of cash back you can earn.
• Better rewards elsewhere: Rewards credit cards may offer more cash back than a rewards checking account.
• Minimum balance requirements: Some banks have minimum initial deposit requirements and/or ongoing balance requirements to earn the reward. If you cannot meet the requirement or do not wish to keep that much money in a checking account, the account might not be the right fit.
• Fees: While some rewards checking accounts have no fees, others do charge monthly maintenance fees that can make the rewards less attractive or possibly even negate them.
Cashback Checking Accounts vs Credit Cards
You may be wondering whether a cashback checking account or credit card is the better fit for you. See how they stack up here:
| Cashback Checking Account | Cashback Credit Cards |
|---|---|
| Provides a secure hub for daily finances | Provides a line of credit for purchases |
| May charge fees | Charges interest; may charge annual fee |
| Earn cashback typically through debit card use | Earn cashback typically through spending with credit card |
Is a Rewards Checking Account Worth It?
A rewards checking account with cash back can be a good fit if the conditions to earn the perks are no problem for you. You might consider going with this type of checking account if:
• You’re already in the habit of swiping your debit card for everyday purchases (or this prospect doesn’t faze you). If so, it might be easy for you to manage a checking account like this and make your money work harder for you.
• You tend to keep a large sum of funds in your checking account. If that’s the case, you might enjoy the earning potential provided by a high-interest checking account even if it has a higher-than-usual balance requirement.
• You’re willing to have your paycheck directly deposited into the account. Some rewards checking accounts require that you have a recurring direct deposit, such as your paycheck, to qualify for the rewards.
The Takeaway
A rewards checking account could be a good deal if you want to earn interest (or more interest) on cash you have sitting in your checking account and/or there are perks that you could reap for behaviors you already engage in (like swiping your debit card or receiving direct deposit), or don’t mind adopting. It can also be a good alternative to a rewards credit card, since there are typically no annual fees.
Before you dive in, however, you’ll want to weigh the rewards against any costs or requirements. If the account charges fees, for example, it could eat into your rewards. And if you don’t consistently meet the requirements to earn rewards, you may not get any.
As with all decisions concerning your financial life, it pays to shop around to make sure you’re finding the best fit for your lifestyle and goals.
FAQ
What are rewards in banking?
Rewards in banking refer to incentives and perks that account holders receive. They might be a signup bonus for a new account, a higher-than-average interest rate, or cash back on debit card purchases. Customers may need to meet certain requirements, such as maintaining a certain balance or spending a certain amount on their debit cards each month, to receive the rewards.
Why do banks offer points or rewards?
Banks offer points or rewards to entice consumers to choose their accounts or cards over competitors. Once you become a customer, rewards ensure you continue to engage with the bank’s product, either by depositing more funds into your account or using your debit or credit card for more daily purchases.
Are bank rewards interest?
Bank rewards are generally not considered interest. Interest is the money you earn from keeping your funds in a savings or other interest-bearing account. By contrast, rewards are promotional incentives given for specific actions like spending or meeting account requirements. That said, in some cases, a reward will come in the form of a higher-than-average interest rate.
Can you earn points on a checking account?
Yes, some banks offer rewards checking accounts that let you earn points for everyday activities like using your debit card. These points can often be redeemed for cash back, travel, gift cards, or merchandise. Not all checking accounts offer this feature, however, so it’s important to compare options and read the terms to make sure the rewards align with your spending habits.
Are bank rewards worth it?
Whether or not bank rewards are worth it depends on your financial situation and preferences. Do you meet the criteria for a rewards checking account (such as swiping your debit card often enough or receiving a certain dollar amount of direct deposits)? Can you handle any requirements such as monthly minimum balance or account fees, if assessed? If so, earning interest or receiving other perks could be a smart, money-wise move.
Photo credit: iStock/Feodora Chiosea
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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