Axos Bank Rewards Checking Offers 1.25% APY Without Any Fees

No fees and higher interest mean more money in your pocket.

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High interest rates are typically reserved for high-yield savings accounts, but in most cases, you won’t get much interest at all with a checking account. With online bank Axos, however, you’ll earn up to a 1.25% annual percentage yield (APY) with its Axos Bank Rewards Checking account. Here’s what you need to know to determine if it’s a good fit for you.

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Axos Bank Rewards Checking Review

Axos Rewards Checking Details

Axos Bank, formerly Bank of the Internet USA, is a leading online bank with several impressive banking products, and its Rewards Checking account is one of them.

The account offers up to 1.25% APY, which stacks up well against some of the best high-yield savings accounts. To earn that maximum APY on the account, though, there are three requirements you need to satisfy:

Tier APY†
Receive a monthly direct deposit of $1,000 or more 0.4166%
Use your debit card for a total of 10 transactions of $3 or more per month 0.4166%
Use your debit card for a total of 15 transactions of $3 or more per month 0.4166%
Total APY: 1.25%

† Slickdeals updates APY weekly. These rates are accurate as of Sep. 14, 2020.

For each of these tiers you satisfy, you’ll get a 0.4166% APY on your balance for the month. This means you’ll need to do some legwork to make sure you qualify for the full amount each month. However, if you regularly use a debit card as your primary payment method and you can easily meet the direct deposit requirement with your paychecks, you may not have to keep track.

Average percentage yields (APY) fluctuate as financial institutions adjust their rates with the market. It’s one of the primary reasons to shop around for the account that best meets your goals. If you’re interested in locking in your money at a specific APY, consider a certificate of deposit (commonly referred to as a CD). The CIT Bank No-Penalty CD is a popular option with risk-averse investors who want flexibility with their savings.

In addition to a high interest rate, the account also offers:

  • No monthly maintenance fee
  • Unlimited domestic ATM fee reimbursements
  • No overdraft or non-sufficient fund fees
  • No monthly minimum balance requirement

It’s pretty easy to find other checking accounts with no monthly fee, especially with online banks and credit unions. However, the ATM fee reimbursements and no overdraft and non-sufficient fund fees are impressive, especially considering the account’s APY on top of it.

Minimum Balance to Open Account

Keep in mind, though, that you need to deposit at least $50 when you first open the account.

Other Benefits and Tools

The account’s interest rate and fee structure is its main value proposition, but you’ll also get some other important (but standard) banking features:

Switch Kit If you’re planning to open an account with Axos, you’ll get a step-by-step checklist to help you move all of your banking over from your current account.
Online Bill Pay You can set up your monthly bill payments with each lender and utility company individually, or you can manage them all in one place with Axos.
Mobile Banking Download the Axos Bank mobile app and you can manage your account and deposit checks anywhere, anytime.
Other Financial Products In addition to the Rewards Checking account, Axos Bank also offers several other checking accounts, savings and money market accounts, mortgage, auto and personal loans, and even investment management.

Online-Only Bank

One thing to keep in mind, though, is that because Axos is an online bank, it doesn’t have any physical branches. If you prefer in-person service, switching to an online bank may not be appealing to you.

How to Open an Account

If you want to take advantage of all the features the Axos Rewards Checking account provides, visit Axos Bank’s website. You’ll need your Social Security number, a valid ID and other personal information to create an online account an submit an application. You’ll also need an existing bank account you can use to transfer money to fund your new checking account.

After you open the account, you’ll need to change your direct deposit information and all of your recurring charges from your old checking account over to the new one. Make sure you don’t forget subscriptions and premiums that occur less frequently, such as auto insurance and annual subscriptions.

Open an Account Today

We want to make sure you get the best deal! Our editors strive to ensure that the information in this article is accurate as of the date published, but please keep in mind that offers can change. We encourage you to verify all terms and conditions of any financial product before you apply. Also, please remember this content wasn't provided, reviewed or endorsed by any company mentioned in this article.

Any product or service prices/offers that appear in this article are accurate at time of publish, and are subject to change without notice. Please verify the actual selling price and offer details on the merchant's site before making a purchase.

Ben Luthi

Ben Luthi is a personal finance and travel writer and credit card expert. He has a degree in finance from Brigham Young University and worked in financial planning, banking and auto finance before writing full-time for NerdWallet and Student Loan Hero. Ben is now a full-time freelance writer and enjoys traveling and spending time with his two kids. His work has appeared in several publications, including U.S. News & World Report, USA Today, Money, Success and Slickdeals.

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