High-yield checking, answered: SoFi, Axos, Varo, Current and Chime

Five accounts on our debit list advertise a way to earn on your balance or protect it from overdraft fees: SoFi, Axos, Varo, Current and Chime. Their headline numbers range from nothing to up to 5.00%, and almost every one comes with a condition. These are the questions that decide which one is worth opening, answered directly.

Which of these accounts actually pays interest on checking?

Axos Bank Rewards Checking is the only one whose headline rate applies to the checking balance itself: up to 3.30% APY when the qualifying activity requirements are met each month. The others pay their rates somewhere else. SoFi’s up to 3.80% APY applies to savings and vaults, Varo’s up to 5.00% APY to the linked Varo Savings Account, and Current’s up to 4.00% bonus to balances in its Savings Pods. Chime’s standard checking account pays no APY.

That distinction matters less than it sounds. Moving money between a checking account and a linked savings account at the same provider is usually quick, so a high savings rate next to a free checking account can work just as well. What matters is whether you will meet the condition attached to the rate.

Which headline rate is highest, and what does “up to” hide?

On paper, Varo’s up to 5.00% APY is the highest, followed by Current’s up to 4.00% bonus, SoFi’s up to 3.80% and Axos’s up to 3.30%. But each is a ceiling. “Up to” generally means the full rate applies only when conditions are met, and sometimes only on part of a balance. Our catalogue does not list the conditions behind Varo’s or Current’s figures, so confirm them on each provider’s own page before comparing.

What does “with a qualifying direct deposit” mean in practice?

It generally means that part of your pay, or another regular payment such as a benefit, must arrive in the account electronically from an employer or payer, not as a transfer you make yourself. SoFi’s up to 3.80% APY and its welcome bonus of up to $300 both depend on a qualifying direct deposit. What counts, and how much, is set by the provider.

The practical question is whether you can move your paycheck. If you can, SoFi’s combination of a strong savings rate, a welcome bonus and no account fees is hard to beat. If you cannot, look at the accounts whose conditions are about activity instead, like Axos, or that ask for nothing, like Chime.

How much would $10,000 earn in each?

APY already includes compounding, so a year’s interest on a steady balance is simply the balance times the APY. At the top advertised rate, on $10,000 held for a full year:

The spread between the top and the bottom of the paying accounts is $170 a year on $10,000. Between any of them and an account that pays nothing, it is several hundred. The first decision, earning something, matters more than the second, earning the most.

Which one has the best overdraft cover?

Varo’s up to $500 is the largest amount, but it is structured as an advance rather than overdraft cover; confirm any cost on Varo’s page. For simple fee-free protection on everyday debit purchases, Chime’s SpotMe and Current’s Overdrive both go up to $200.

Are fintech accounts like Chime and Current FDIC-insured?

Chime is a financial technology company, not a bank. Its banking services are provided by The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC, as our disclosures note. Current’s accounts are issued by Choice Financial Group. Generally, deposit insurance at a fintech applies through its partner bank, which is why it is worth knowing who that bank is. Varo, by contrast, holds its own national bank charter, and SoFi lists extended FDIC insurance through its insured deposit program. Check each provider’s own disclosures for the specifics.

Which is best for ATM access?

Axos reimburses domestic ATM fees without limit, so any U.S. machine works. Among network-based accounts, SoFi lists 55,000+ Allpoint ATMs, Chime 50,000+ fee-free ATMs through MoneyPass and Visa Plus Alliance, and Varo and Current 40,000+ Allpoint ATMs each. If you travel abroad and withdraw cash, none of these is designed for it; see Schwab Bank Investor Checking.

Do any of these accounts build credit?

Generally, no. Checking accounts and debit cards are not usually reported to the credit bureaus as credit. Chime’s perk list does note that its checking account pairs with the Chime Credit Builder Visa, a separate credit product that reports your payments; we compare it in our guide to building credit from zero.

If you mainly want rewards on spending rather than interest on a balance, Discover Cashback Debit pays 1% on up to $3,000 in debit purchases a month with no direct-deposit requirement.