First it was the high-yielding online savings accounts, and now it is the high-yielding online checking account. The great success of the online high-yielding savings accounts seems to have led to the growth of the high-yielding checking account. Why would brokerages want to offer high-yield checking accounts to customers? The brokerages are able to increase their assets, while not paying out too much of their earnings in interest. 
ING Direct was the first to make the move, as it was with savings accounts, starting its Electric Orange high-yield interest checking accounts. These accounts yield 4% if your balance is under $50,000. Charles Schwab (NASDAQ:SCHW) and E*Trade (NASDAQ:ETFC) quickly threw their hat in the ring, yielding 4.25% and 3.25% respectively. Now the news is that financial giant Fidelity Investments will be next to offer a high-yield checking account with a yield of 3.5%.
How should you use these high-yield checking accounts? These accounts are very beneficial to you if you want to have an online checking account with some money that you are able to move quickly, but they shouldn't be where you put all your savings. The online high-yield savings accounts still yield about 1.5% more than these checking accounts do, so you would be wise to keep the majority of your money in the savings account. The checking account should be where you keep spending money and a little extra on top to earn from the nice yield.
BankRate is a great source to use in finding the best high-yield checking account for you. Don't be surprised if you see more and more brokerages offering high-yield checking accounts online over the next few months. High-yield checking accounts are the new way to GrowYourFunds!
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