This checking account earns 8% APY — with a catch (2024)

Pennsylvania-based Horizon Federal Credit Union offers a checking account that earns an 8% annual percentage yield (APY) — a number boosting it past most high-yield savings accounts, let alone other checking accounts.

And while only residents of certain Pennsylvania counties qualify for this account, that doesn't mean you have to settle for a checking account that only earns a pittance. Read on to find out what checking accounts can help your money grow.

The Horizon Advantage Checking Account earns you a high rate of interest, but you must first meet certain qualifications before opening an account.

Unfortunately, while some credit unions offer membership to anyone regardless of where you live, Horizon Federal requires you to either reside or work in one of the following Pennsylvania counties to join:

• Bradford
• Centre
• Clinton
• Columbia
• Lycoming
• Montour
• Northumberland
• Potter
• Sullivan
• Tioga
• Union Counties

To qualify for the account's 8% APY, you'll also need to register for direct deposit, enroll in e-statements and make 15 or more debit card purchases each month. Additionally, it's important to note that you earn the 8% APY on balances up to $25,000 — any portion of your balance exceeding that limit only earns 0.25%.

While you probably don't qualify for this account because of the geographical restrictions, that doesn't mean you have to settle for a checking account with 0% APY. There are a range of interest-bearing checking accounts that offer around 5.00% APY on your balance.

For example, the All America Bank® Ultimate Rewards Checking Account offers up to 5.15% APY on balances up to $15,000 (0.50% APY thereafter) or 0.25% APY if you don't meet the requirements (making at least 10 monthly debit card transactions and receiving electronic statements).

For larger balances, the Presidential Bank Advantage Checking also offers a 4.62% APY on up to $25,000 (3.62% APY thereafter) or 0.10% APY if you don't meet the requirements (a monthly direct deposit of at least $500 and at least 7 electronic withdrawals from the account every month).

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