Axos Bank Rewards Checking Account Review: A Hard to Ignore Checking Account

The Axos Bank Rewards Checking Account has a maximum APY that bests some of the top savings accounts we've reviewed. But its tiered APY system means that not everyone will qualify for this high rate. That said, there's still plenty to love about this account. Read our full review to learn about all its perks.

Top perks

Earn 0.40% (up to 3.30%) APY: The Axos Bank Rewards Checking Account's APY makes it one of the most lucrative checking accounts we've seen. Interest-bearing checking accounts are still relatively rare, and those that exist usually have APYs that fall far short of the rates of savings accounts. But with this account, you only earn interest on balances up to $50,000.

There's a tiered system that determines your APY. You must meet all the requirements for all tiers to get the highest potential APY. Keep in mind, though, that account holders won't receive any interest during the statement cycle if they're not meeting the base requirements.

Limited-time welcome offer: New customers can use promo code RC500 and apply by July 31, 2024 to earn up to a $500 bonus. Terms apply.

Unlimited domestic ATM fee reimbursements: Axos Bank doesn't have a network of fee-free ATMs, but this shouldn't concern you because it does offer unlimited domestic ATM fee reimbursements. Few banks do this, and it's a nice option if you don't want to worry about finding a fee-free ATM near you. Note that your ATM may still charge you a fee that could temporarily reduce your balance until Axos Bank reimburses you for it. You could also get slapped with ATM fees if you take your Axos Bank debit card abroad, so plan accordingly.

No minimum balance requirements: You need at least $50 to open your Axos Bank Rewards Checking Account, but after it's open, it doesn't matter how much you keep there. You're still eligible to earn interest on your purchases and you don't have to worry about monthly maintenance fees if your balance drops too low.

Unlimited free mobile deposits: Axos Bank doesn't charge you fees for mobile deposits or restrict how many mobile deposits you can make in a month. This is ideal for people who still get paid with physical checks and don't want to run to a branch location or incur extra fees for doing what's most convenient.

FDIC insured: Finally, Axos Bank accounts are covered by the same FDIC insurance as traditional bank accounts. This covers you for up to $250,000 per depositor, per institution, in the event of a bank failure.

What could be improved

APY qualification requirements: The Axos Bank Rewards Checking Account uses a tiered system where the highest APY is only available when meeting the deposits and transactions monthly requirements. The most restricting requirements are that accountholders must also have an Axos Invest Managed Portfolios account and a Axos Invest Self Directed Trading account, and an Axos bank loan. While the base tier is still high, the tiered structure is complex overall and most people won't receive the maximum APY.

We tried it: Our team's firsthand experience

Here at The Motley Fool Ascent, we pride ourselves as real users of most of the products across our site. Our Head of Coverage, Matt Koppenheffer, uses the Axos Bank Rewards Checking Account himself.

Axos Bank gives you several ways to access your funds. Here's a closer look at how to deposit and withdraw money from your Rewards Checking Account.

Deposit options

You can deposit money into your Axos Bank Rewards Checking Account in any of the following ways:

• ACH transfer
• Mobile check deposit
• Wire transfer
• Mailed checks

You'll need $50 to open your account, and Axos Bank will prompt you to fund your Rewards Checking Account in one of these ways when you sign up. Axos Bank does not charge fees for incoming wire transfers, but the bank you're transferring the money from may charge you an outgoing wire transfer fee if you're funding your account in this way. Use one of the other methods if you don't want to worry about running into extra costs.

RELATED: How To Open a Checking Account

Withdrawal options

You can withdraw money from your Axos Bank Rewards Checking account in any of these ways:

• ACH transfer
• Wire transfer
• Requesting a mailed check
• ATM withdrawal
• Point-of-sale cash withdrawal

Note that with any method other than an ATM withdrawal, it could take a little while to receive your funds. Plan accordingly by withdrawing the money in advance to avoid running into problems.

The Axos Bank Rewards Checking Account is a great option for those who deposit more than $1,500 to their account every month and use their debit cards frequently. Its APY bests most savings accounts, and even those who don't qualify for this rate can still earn an APY that's far above average. The account's unlimited ATM fee reimbursements also make it a good fit for those who don't want to go out of their way to get their cash for free.

The account's main drawback is that its tiered interest model disadvantages those with small balances and those who rarely use their debit cards. If either of these apply to you, there are better checking accounts out there that offer a high interest rate with fewer strings.

If Axos Bank Rewards Checking isn't right for you, check out our full list of Best Checking Accounts.

Keep reading about Axos Bank

• Axos Bank Review
• Axos Basic Business Checking Review
• Axos High-Yield Savings Review

Our checking account methodology

At The Motley Fool Ascent, we rate checking accounts on a five-star scale (1 = poor, 5 = best). We evaluate all checking accounts across four main criteria: brand and reputation, APY and rewards, fees and minimum requirements, and perks.

Our scores are weighted as:

• Brand and reputation: 40%
• APY and rewards: 30%
• Fees and minimums: 15%
• Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.