With a Fed Cut Likely, This 5% Bank Account—And Its $300 Bonus—Is a Winning Option

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How This High-Yield Checking Account Delivers 5% Plus a $300 Bonus

High-yield checking accounts that pay stellar rates in exchange for jumping through a few hoops aren’t new. Neither are bank account bonuses. But it’s rare to see both appealing offers combined into one account.

That’s what Connexus Credit Union is offering with its Xtraordinary Checking account, which recently added a lucrative $300 cash bonus to go along with its 5.00% APY.

Here’s what it takes to earn the APY:

• The 5.00% rate applies on balances up to $25,000—among the more generous caps for top high-interest checking accounts.
• You’ll need to use a debit card, but there’s flexibility: either 15 transactions per statement cycle, or $500 in total monthly debit spending. A few large purchases can meet the requirement just as well as many smaller ones.
• You must also receive at least $500 in electronic deposits each month. That can be direct deposit, but an external transfer from another bank qualifies, too.

Meet both requirements in a statement cycle, and your balance (up to $25,000) earns 5.00% APY.

Here’s what it takes to earn the bonus:

• Satisfy the APY requirements above for two calendar months within your first four months.
• The size of your bonus will depend on your average balance for those two months:
• $300 bonus if you average $10,000 or more
• $200 bonus if you average $5,000–$9,999
• $100 bonus if you average $1,000–$4,999

Finally, you’ll need to enroll in e-statements, open the account by Nov. 9, and use the required promo code listed on Connexus’ website.

Other Strong Savings Moves If This Account Isn’t the Right Fit

If debit card transaction requirements don’t work for you, there are still plenty of ways to earn a strong return on your cash.

Every day, we rank the nation’s top high-yield savings accounts, and right now 15 banks are paying between 4.31% and 5.00%. The very top accounts at 5% do come with some conditions—similar to Connexus’ checking—but many others in our rankings offer competitive APYs with no strings attached.

Another option is a leading money market account. These work much like savings accounts but add the convenience of paper check writing. While most pay a bit less than the best savings accounts, the current leader offers a solid 4.80% APY without any special requirements.

Finally, if you can set aside money you won’t need soon, a certificate of deposit (CD) is another smart option. Unlike savings or checking accounts, whose rates can be lowered anytime, a CD locks in your return until it matures—a valuable feature with Fed rate cuts likely ahead. Today’s best nationally available CDs are paying between 4.28% and 4.60%—that top rate available from Connexus—on terms ranging from 3 months to 5 years.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.