If you’re looking for a more rewarding way to manage your everyday finances, a rewards checking account could be a great fit. Unlike traditional checking accounts that simply hold your money, rewards accounts provide you with rewards like interest on your balance, cashback on purchases, or other perks.
While many of these accounts require you to meet specific qualifying activities to unlock rewards, others (such as TAB Spend accounts) make it easy to earn more with your money.
Whether you’re looking to grow your balance or get a little extra back on what you already spend, rewards checking offers a simple way to make your money work harder. Let’s dive deeper into rewards checking accounts and learn how to find the best option for your personal banking needs.
What is a Rewards Checking Account?
A rewards checking account is a type of deposit account offered by banks and credit unions that allows account holders to earn financial rewards based on specific account activity. These accounts were created to attract and retain customers by incentivizing behaviors like using a debit card, signing up for eStatements, or maintaining a certain balance.
Unlike promotional bonuses that only offer one-time incentives, rewards checking accounts provide ongoing benefits each month when you meet the account’s criteria. This makes them especially appealing for those who want both the utility of a checking account and the earning potential of a savings product.
How Does a Rewards Checking Account Work?
Here’s how a typical rewards checking account works:
- You open an account with a participating financial institution.
- Each month, you complete a set of qualifying actions (e.g., 15 debit card purchases, receive a direct deposit, opt in to eStatements).
- Once those criteria are met, you unlock that month’s rewards: high interest, cashback, or other perks.
But not all rewards checking accounts follow the standard model.
TAB Spend stands out by removing the hassle—there are no qualifying activities required to earn your rewards. You don’t have to track debit card usage, enroll in direct deposit, or maintain a certain balance in your account.
Additionally, while most rewards checking accounts offer either cashback or interest, TAB Spend pays both. You’ll earn cashback on eligible purchases and interest on your balance, automatically, every month.
With TAB Spend, there’s no fine print or hoops to jump through. It’s one of the easiest ways to earn more from your checking account—without changing your habits or meeting monthly requirements.
High Yield Savings Account vs. Rewards Checking Account
When deciding how to maximize your money, you may wonder about the differences between a high-yield savings account and a rewards checking account. Both may offer interest, but they serve distinct purposes.
- A high-yield savings account is designed for saving—not spending. It may limit the number of withdrawals or transfers you can make per month, and is ideal for stashing away money for a rainy day or long-term goal. Learn more about what a high-yield savings account is.
- A rewards checking account, by contrast, is meant for daily transactions. You can make unlimited purchases and withdrawals without penalty while still earning meaningful rewards.
If you prefer liquidity and active use, or just want to earn more from expenses and purchases you already have to make, a rewards checking account is likely the better fit. If your aim is long-term growth without touching the funds, pairing your rewards checking account with a high-yield savings account could help you reach that goal more quickly.
Types of Rewards Offered with a Rewards Checking Account
Depending on the bank or credit union, the types of rewards offered can vary. The most common include:
1. Cashback
Earn a percentage of your debit card purchases back as cash. This reward works similarly to cashback credit cards, but with the added benefit of avoiding interest charges or debt accumulation.
2. Interest
Some rewards checking accounts offer competitive interest rates—often higher than those found in standard savings accounts. This means you can earn on your balance while keeping your money accessible to spend.
3. Specialized Perks
Certain institutions partner with retailers or travel brands to offer customized rewards. These can include airline miles, loyalty points, gift cards, or even discounts on specific products or services.
Unlike TAB Spend, most accounts offer just one type of reward or require you to choose the reward type you prefer. Be sure to read the terms of any rewards checking account you open, to understand whether there are qualifying activities required, fees that might apply, or other limitations to your reward potential.
Pros of Using a Rewards Checking Account
Choosing a rewards checking account over a standard one offers a host of benefits:
- Higher Earning Potential – From cashback to high annual percentage yield (APY), your money has the potential to generate value passively.
- No Hidden Fees – Many rewards checking accounts don’t charge maintenance fees if requirements are met. TAB Spend accounts do not charge any fees, and do not have any required actions to unlock the monthly rewards.
- Motivates Smart Banking Habits – Making debit purchases or using digital banking often aligns with what you’re already doing—helping you build strong financial habits.
- More Accessible Than Credit Cards – You can earn rewards without a credit check or risk of debt.
- Flexible Usage – Unlike savings accounts that may include withdrawal limits, you can spend freely.
Cons of Using a Rewards Checking Account
Despite the benefits, traditional rewards checking accounts may not be ideal for everyone. It’s important to understand the potential drawbacks—especially since many accounts come with strings attached.
- Activity Requirements: As noted, some rewards checking accounts require you to complete certain monthly actions (like a minimum number of debit card transactions or enrolling in direct deposit) in order to earn rewards. If you choose an account of that type, you’ll need to pay close attention to qualification cycle dates to ensure you don’t miss out.
- Account Fees: Financial institutions may charge a monthly fee to unlock the best rewards or have strict requirements to waive them. It is important to be aware of these fees, and whether or not they can be avoided, when choosing an account. You will need to subtract the expected fees (expenses) from the expected rewards to determine the true value of each account option.
- APY Limitations: Some accounts may only apply their highest interest rate to a limited portion of your balance (e.g., the first $10,000), while the rest earns far less—if anything at all. Again, paying close attention to the terms of each account is essential to find the best fit.
- Variable Rates: Like most deposit accounts, reward structures and interest rates are subject to change. For larger and longer-term deposits, you should consult with a qualified financial professional to determine how a rewards checking account could be paired with other account types as part of a broader investment strategy.
The key to maximizing your earning is to find a rewards checking account that aligns with your natural habits. TAB Spend was built with flexibility in mind: offering both cashback and interest with no hoops to jump through. It’s designed to reward how you already use and store your money, not how you’re told to.
TAB Spend Rewards Checking Account
TAB Spend is a rewards checking account designed to simplify your finances while helping you earn more. Unlike other rewards accounts that require specific actions each month, TAB Spend gives you both high interest and cashback automatically, with no fees and no qualifying activities or balances required.
Here’s what you get:
- 3.50% APY on your balance – a competitive rate that rivals or exceeds many savings accounts
- 1.00% cashback on all qualifying debit card purchases
- Zero account fees – no monthly maintenance charges, no activity fees, no surprises
And there’s no barrier to getting started:
- No minimum deposit to open an account
- Earn interest beginning the day of your first deposit
- No direct deposit requirement to unlock rewards
TAB Spend also includes modern banking features that make it easy to manage your money securely and on the go:
- Mobile and online banking access for 24/7 convenience
- FDIC insurance with protection up to $250,000
- Free online bill pay service to stay organized and on schedule
- Advanced card security tools like custom alerts, spending limits, and digital card controls
- Travel plan settings to prevent card holds while you’re away
TAB Spend stands out because it’s built to reward how you already bank—with no behavioral requirements and no account fees eating into your rewards. Plus, you don’t have to choose between earning interest or getting cashback. With TAB Spend, you get both.
Rates are effective as of [insert date] and are subject to change at TAB Bank’s discretion. Minimum balance to obtain APY is $0.01. The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category.
Take Advantage of a Rewards Checking Account with TAB Bank
Now that you know what a rewards checking account is and how it works, the next step is finding one that truly delivers value. We believe TAB Spend is a great fit for anyone considering a new rewards checking account. With a market-leading interest rate, 1.00% cashback on everyday purchases, and no fees, it’s a win-win.
Whether you’re new to rewards banking or switching from a costly, traditional rewards account, TAB Bank makes the process easy and beneficial from day one. There’s no minimum balance, no complicated hoops to jump through—just straightforward benefits and powerful tools to help you manage your money better.
Learn more about TAB Spend Rewards Checking Accounts and start earning today.
