Interest earning checking accounts are great for paying bills. They do not have transaction limits (like savings accounts) and can be used to earn a little while you wait for payments to clear. Half of Boston's financial institutions offer interest earning checking accounts. We list them below from the highest to the lowest.
Institution | APY |
First Priority Credit Union | 2.50% |
Taupa Lithuania Federal Credit Union | 0.10% - 0.20% |
Hanscom | 0.10% |
OneUnited | 0.10% |
Members Plus Credit Union | 0.10% |
Dedham Savings Bank | 0.05% - 1.00% |
Commonwealth Bank | 0.05% - 0.10% |
Needham Bank | 0.05% |
Energy Credit Union | 0.05% |
Cabot Boston Credit Union | 0.05% |
American Eagle Federal Credit Union | 0.05% |
Mass Bay Credit Union | 0.03% |
Merrimack Valley Credit Union | 0.02% - 0.20% |
Berkshire Bank | 0.02% - 0.10% |
Cathay Bank | 0.02% - 0.05% |
Eagle Bank | 0.02% |
HarborOne Bank | 0.01% - 0.05% |
Cambridge Trust | 0.01% |
TD Bank | 0.01% |
M&T Bank | 0.01% |
Boston Firefighters Credit Union | 0.01% |
Eastern Bank | 0.01% |
Wells Fargo | 0.01% |
Rates and services are accurate as of September 2024, but may change at anytime. Please check with each institution for the most updated information.
Does Boston Offer High Yield Checking Accounts?
According to our research, rates in Boston range from 0.01% to 2.50%. If you want to go beyond the city, there are some online accounts that offer even higher earnings. For example, Presidential Bank, has a 4.62% checking account.
What Is The Difference Between a High Yield Checking Account and An Interest Earning Checking Account?
A high yield checking account typically offers a higher interest rate compared to a traditional interest earning checking account. This means that with a high yield checking account, you have the opportunity to earn more with what you have. However, high yield checking accounts often come with certain requirements such as maintaining a minimum balance or making a certain number of transactions each month. On the other hand, an interest earning checking account usually offers a lower interest rate but may have fewer requirements. Feel free to compare the benefits of each account to determine which one meets your specific needs. Below is an example of a two sample banks. Bank 1 earns a higher rate, but also requires a higher minimum balance to avoid fees. Bank 2 has a lower rate, but doesn't require any minimum balance.
Institution | Req'd Balance | APY |
Bank 1 | $20,000 | 4.20% |
Bank 2 | $0 | 2.10% |
How Much Should You Keep In An Interest Earning Checking Account?
This is not financial advice. But if we were talking to our younger selves, we'd say keeping the bare minimum (around 1 month of expenses) is plenty.
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