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Many credit unions and banks offer “rewards checking.” This essentially means if you meet basic qualifications with your checking account, you’ll earn a high interest rate. Most of these institutions are for locals only, but some are available nationwide. Currently, the best natinally available interest rate for rewards checking is Founder’s Bank at 5.01%. That’s significantly better than the current interest rate of ING direct.

To earn the high interest rate for a given month,  you must meet monthly qualifications. The qualifications are 12 debit card transations, sign in online at least once a month, and one direct deposit. The direct deposit requirement is easy, especially if money is pushed from your ING, HSBC, etc. online accounts into your Founder’s Bank account. Signing in is a no brainer. But, the 12 debit card transactions means you actually have to use your checking account as the bank intends, instead of your intent to use it as a savings account. I make small purchases on a regular basis in convenient stores, so I can use the debit card there. Another method would be to schedule small payments to yourself via paypal.

So, its not really easy to earn the high interest rate if you don’t intend to use the account, but the dangling carrot of 5% APY is enough to make me jump through some hoops.