Fed rate cuts aren’t stopping high-yield checking account from offering rates as high as 8% APY — for now

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• The Federal Reserve has cut interest rates by 75 total basis points across its last two meetings.
• In response, savings account and CD rates have fallen from past highs.
• High-yield checking accounts still offer rates as high as 8% APY — but they come with a catch.

The Federal Reserve made another interest rate cut in its November meeting, following an even larger rate cut in September. Its September meeting marked the first time the Fed had cut its rates in several years. As a result, high-yield savings accounts and CDs have both seen their rates drop from previous highs.

High-yield checking accounts haven’t seen the same rate dip as savings accounts and CDs. In fact, you can get a high-yield checking account paying as high as 8% annual percentage yield (APY) right now. High-yield checking accounts can offer high rates like this despite Fed cuts because the rates generally come with strict limits and requirements. Still, if you’re interested in opening a primary checking account and you have a certain amount of money you don’t mind spending, a high-yield checking account might be a good choice for you.

How to earn 8% APY on the BCU PowerPlus Checking account 

The best rate you can get from a high-yield checking account is offered by a credit union anyone can join: BCU.

The BCU PowerPlus Checking account comes with a high interest rate of up to 8.00% APY, but only for the first $15,000 in your account and only if you meet strict requirements.

It’s a tiered interest account; your checking account can either be Level One or Level Two. Level One accounts earn a base rate of 2.00% APY for the first $15,000, while Level Two accounts earn a base rate of 4.00% APY for the first $15,000. 

To get a Level One account, you’ll need to have at least $1,000 of direct deposits and make at least 15 transactions (like debit card purchases) each month, along with enrolling in eStatements. To get a Level Two account, you’ll have to have at least $3,000 of direct deposits and at least 30 transactions monthly, along with eStatements. For both Level One and Level Two, you’ll make 0.01% APY on any money over $15,000 you put in your account. If you don’t meet these requirements, you won’t earn any interest.

If you’re a new member who opens an account before December 31, 2024, you’ll be able to double your interest rate on the first $15,000 in your account. That means new Level One members will earn 4.00% APY, and Level Two members will earn 8.00% APY, the highest tier. You’ll only be able to earn that rate for three months, though. After that, you’ll earn the base rate for your account’s Level.

You can only have one BCU PowerPlus Checking account per member. The easiest way to become a member of BCU is to subscribe to Life. Money. You., a free program hosted by BCU. You can also join by living in specific parts of Illinois, Wisconsin, or Puerto Rico, by working for a select employee group, or by being a family member of someone who’s already banking with the credit union.

Other strong high-yield checking account options

If you don’t think you can meet BCU’s strict requirements, or if you don’t want to open a checking account for only three months’ worth of high interest, you might consider one of the other high-yield checking accounts that offer great rates. We’ve listed some of the options from the best banks and credit unions for high-yield checking accounts, along with what their highest APY requirements are, to help you choose the right account for you.

Not every savings goal will work well in a high-yield checking account. If you don’t want to accidentally spend away your savings, or if you don’t want to keep up with strict earning requirements, a high-yield savings account might be a better choice, even if you can’t earn as high a rate. If you want to lock in a high rate for an extended period of time — and you don’t mind losing access to your funds for a while — a CD might be a good fit, too.