Average Checking Account Interest Rate

Adam McCann, WalletHub Financial WriterJan 27, 2026

Adam McCann, WalletHub Financial Writer
Jan 27, 2026

Average Checking Account Interest Rate:

National Average for January 2026: 0.07%
Change from January 2022: 133%

Checking accounts are essential for managing daily transactions but typically do not earn interest. Even the checking accounts that do offer interest usually have lower rates than savings accounts. As of January 2026, the average interest rate for these accounts is 0.07%, according to the FDIC. This allows you to earn a small return while maintaining easy access to your funds.

Table of Contents

Average Checking Account Interest Rates Over Time

As of January 2026, the average checking account interest rate is 0.07%, which is more than twice the 0.03% rate from January 2022.

Source: Federal deposit Insurance Corporation, 2026

Average Checking Account Interest Rates by Category

Online checking accounts give 1% lower interest rates than branch-based accounts.

	Personal-Online	Personal-Branch	Business-Branch	Student-Branch
$1,000 balance	1.45%	1.64%	0.34%	0.38%
$3,000 balance	1.42%	1.43%	0.31%	0.13%
$10,000 balance	1.31%	1.26%	0.17%	0.13%
$25,000 balance	1.06%	0.53%	0.30%	0.13%
$50,000 balance	1.09%	0.38%	0.35%	0.13%
WalletHub Index	1.38%	1.39%	0.28%	0.19%

Source: WalletHub Banking Landscape Report, 2025

Average Checking Account Interest Rates by Institution

Credit unions offered much higher interest rates on deposits in Q4 2025, about 60 times higher than regional banks.

	Community	Small	Regional	National	Credit Union
$1,000 balance	0.79%	1.58%	0.04%	0.35%	2.62%
$3,000 balance	0.60%	1.33%	0.04%	0.27%	2.53%
$10,000 balance	0.60%	1.08%	0.05%	0.04%	2.32%
$25,000 balance	0.44%	0.59%	0.06%	0.03%	0.85%
$50,000 balance	0.24%	0.49%	0.08%	0.04%	0.57%
WalletHub Checking Interest Index	0.63%	1.28%	0.04%	0.21%	2.41%

Source: WalletHub Banking Landscape Report, 2025

Average Checking Account Interest Rates by Region

In Q4 2025, interest rates in the Southeast region were approximately 32 times higher than those in the West.

	Midwest	West	Southwest	Southeast	Northeast
$1,000 balance	2.00%	0.07%	0.54%	2.57%	1.15%
$3,000 balance	1.73%	0.07%	0.54%	2.39%	0.95%
$10,000 balance	1.57%	0.08%	0.44%	2.09%	0.86%
$25,000 balance	0.63%	0.11%	0.44%	0.85%	0.33%
$50,000 balance	0.54%	0.12%	0.44%	0.45%	0.33%
WalletHub Checking Interest Index	1.70%	0.07%	0.51%	2.27%	0.94%

Source: WalletHub Banking Landscape Report, 2025

Popular High-Yield Checking Accounts

Checking Account	APY
mph.bank Free Checking Account	4.00% APY on balances up to $50,000
Primis Premium Checking	3.70% APY on any balance
Woodforest National Bank Platinum Plus Checking	0.50% APY
Capital One 360 Checking Account	0.10% APY on balances up to $50,000
Connexus Credit Union Teen Checking	2.00% APY on balances up to $1,000
Bluevine Premier Business Checking	3.00% APY on balances up to $3,000,000
BCU PowerPlus™ Checking	8.00% APY on balances up to $15,000

For more information, check out WalletHub’s complete review of the best high-yield checking accounts.

Questions & Answers(8 questions)

Editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered.

Upvotes

What is a checking account?

Kathleen Cole

A checking account is a basic deposit account held with a bank or credit union. Features like direct deposit allow employers to directly transfer paychecks into a checking account, and debit cards allow easy access to funds wherever Visa, Mastercard or American Express is accepted.

Key Things to Know About Checking Accounts

Low interest rates. If you're looking to earn interest on your money, don't leave it in a checking account. Their interest rates have historically averaged only 0.03% - 0.14% APY, and some earn no interest at all.
Fees galore. Checking accounts can charge all kinds of fees, including a monthly maintenance fee that many banks will waive if the account's balance is kept above a certain level or if it receives regular direct deposits, such as paychecks. Read your account agreement's fine print carefully to avoid maintenance fees, overdraft fees, and other unpleasant charges.
Funds held in checking accounts are easy to access. You can make purchases and withdraw cash with a debit card, write checks, or even instantly transfer money to a friend via a mobile banking app, making this kind of account great for everyday use. However, if you're trying to save money, having your funds accessible at all times could be a downside.
Rewards? If you're hoping to earn rewards on purchases you make with a debit card, you'll likely be disappointed. It's rare to find a checking account that offers this feature. Only about 5% of personal branch checking accounts offer a rewards program, according to WalletHub's latest Banking Landscape Report.

You can use WalletHub's checking account comparison tool to find the right checking account offer for you.

View more answers

Upvotes

What does average daily balance mean?

WalletHub

The average daily balance is a method used by financial institutions, such as banks and credit card companies, to calculate interest charges or assess fees based on the average balance in an account over a specific period. This method provides an accurate representation of the account's average balance.

For credit cards, the average daily balance is often used to determine the interest charges. To find out the average daily balance, the sum of daily balances...

Upvotes

What gets a higher interest rate, a checking or savings account? Should I start a money market account?

Upvotes

Are high interest rates or low interest rates better?

Theresa Chalfant, Writer

Low interest rates are better than high interest rates when you're borrowing money, whether it's with a credit card or a loan. High interest rates are only good when you're able to earn interest, such as when you put money in a savings account, checking account, CD or money market account.

The rate at which you'll earn interest from a bank will be indicated as a percentage, followed by “APY” (annual percentage yield). With...

Upvotes

Is checking account interest taxable?

Lauren Smith, WalletHub Staff Writer

Yes, checking account interest is taxable because it is considered part of your total income for the year. The IRS requires that you report all of your income, including any amount of interest you may have received, on your tax return.

Key Things to Know About Taxes on checking account Interest

Your bank or other financial institution will send you Form 1099-INT if you've earned $10+ in interest during the year.
...

Upvotes

What does interest mean?

WalletHub

Interest is the cost of borrowing money or the compensation received for lending money. It is essentially the fee paid by a borrower to a lender for the use of money over a specified period. Interest is expressed as a percentage of the principal amount.

Credit card interest refers to the cost of borrowing money from a credit card issuer. When you carry a balance on your credit card by not paying the full...

Upvotes

Are online checking accounts better?

Ramses Delgado, Banking Moderator

Online checking accounts aren't necessarily better than traditional checking accounts, but they offer advantages that might be a good fit for you depending on your priorities. If you value convenience, low fees, and high interest rates, then online checking could be a great option. Here's a breakdown to help you decide:

Pros

Typically higher interest rates: Online banks often have lower overhead costs than traditional banks, and they may pass on those...

Upvotes

What non-cost features should I look for in a checking account?

Sydney Garth, Credit Cards Moderator

The non-cost features you should look for in a checking account include minimum balance requirements, the existence of limitations on transactions, and online and mobile access. Additionally, some checking accounts earn interest, so that is another feature to look for.

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