What is a Rewards Checking Account and How Do They Work? What is a Rewards Checking Account and How Do They Work?

Checking accounts are one of the most common types of deposit accounts offered by banks, generally used for everyday money management like cash withdrawals at the ATM, purchases with checks or debit cards, or paycheck direct deposits. Many financial institutions offer rewards checking accounts with various additional incentives ranging from cash back on debit card purchases to competitive interest rates on account balances. 

Below, we'll explore what rewards checking accounts are, how they work, and some common features you can expect to come across when shopping around for the right account. 

How Do Rewards Checking Accounts Work?

Rewards checking accounts function similarly to traditional checking accounts -- they are primarily used for short- and medium-term access to funds for a range of purposes including withdrawals, deposits, payments, and transfers. As we mentioned above, they are commonly used when setting up direct deposit with an employer to streamline the paycheck process. Checking accounts can also be linked to third-party payment apps like Zelle, Venmo, and Cash App to transfer funds between friends and family. Most checking accounts come with checks and a debit card, which can be used to make purchases and, in the case of the latter, withdraw funds from ATMs. 

Most rewards checking accounts come with all of the features mentioned above, plus added benefits offered by banks and credit unions that can include:

• Cash back on debit card transactions
• Reimbursements for ATM fees
• Competitive annual percentage yield (APY)
• One-time sign-up bonuses upon opening a rewards checking account
• No annual fees or monthly fees

For instance, Leader Bank's Zeugma Plus Checking account currently comes with 1% cash back on checking account debit card purchases plus up to $15 per month in ATM fee reimbursements** -- all with no monthly fees. It also comes with an attached high-yield savings account currently offering 4.75% APY* on balances up to $250,000, meaning you can maximize your savings while earning cash back on checking. 

How to Qualify for Rewards Checking Accounts

Qualifying to earn rewards varies by financial institution -- common requirements include a minimum number of monthly debit card transactions, setting up at least one direct deposit or ACH automatic withdrawal, or using e-statements. Depending on your bank, a rewards checking account may also come with a minimum balance requirement. When deciding what rewards checking account is right for you, it's important to weigh the benefits of the rewards against whether you believe you'll be able to meet any monthly requirements. 

Qualifying for Leader Bank's Zeugma Plus Checking account rewards each month is simple:

• Receive $1,000 in direct deposit to your Zeugma Plus Checking account
• Make at least 3 debit transactions from your Zeugma Plus Checking account,
• Sign up for e-statements

What are the Cons of Using a Rewards Checking Account?

We've already outlined the pros of using a rewards checking account -- cash back with debit card purchases, ATM fee reimbursements, interest earning capabilities, sign up bonuses, and a range of other rewards depending on what financial institution you're banking at. But what are some of the cons of rewards checking accounts? Again, any drawbacks will largely depend on what financial institution you're banking at. Here are some of the common drawbacks of many rewards checking accounts:

• Some banks may limit the rewards on your account (caps on cash back, balance requirements to earn interest, etc.)
• Minimum balance requirements can be prohibitive to opening an account and/or earning rewards 
• Fees can eat into your overall potential earnings
• Many credit card companies offer more competitive rewards including higher cash back percentages or other rewards that may be more beneficial depending on your lifestyle (more cash back on transactions at restaurants or for traveling)

How to Get Started with Leader Bank's Zeugma Plus Checking Account

Ready to start earning cash back on debit purchases while maximizing your hard-earned savings with an attached high-yield savings account? Qualifying for Leader Bank's Zeugma Plus Checking and Savings accounts has never been easier and opening an account can be done from anywhere in the U.S. in just a few minutes online!

Get Started

^{*Annual Percentage Yield (APY) effective as of 4 December, 2025. To open a new Zeugma Plus account relationship, you must make a total initial deposit of $1,000.00 using funds drawn from outside Leader Bank. Your Zeugma Plus Accounts must each be funded with a minimum of $10.00, the minimum balance required to maintain eligibility. To receive the 4.75% APY quoted, you must fulfill the following 3 requirements for your Zeugma Plus Checking each month: (a) receive a minimum of $1,000 in direct deposits, (b) enroll in eStatements, and (c) have three (3) electronic withdrawal debit transactions posted and cleared (excluding internal transfers) (the “Qualifying Criteria”). When you satisfy the Qualifying Criteria, then an APY of 4.75% shall be paid on Zeugma Plus Savings balances up to $250,000 in the following month. An APY of 2.50% will be paid on that portion of daily balances which exceed $250,000; your total APY for such balances will range from 2.50% to 4.75%, depending on total balance. If you do not meet the Qualifying Criteria in a month, you will be paid 2.50% APY on your entire balance in the following month. The APYs above are effective for accounts opened between 12/1/25 and 2/28/26 and shall not be changed for accounts opened in this timeframe until at least 5/31/26; thereafter APYs may vary. Limit one Zeugma Plus Checking and one Zeugma Plus Savings account per household; additional terms and conditions may apply.}

^{**Eligible Zeugma Plus Checking accounts that meet the Qualifying Criteria will be reimbursed up to $15 per month in ATM surcharges assessed by other banks and will receive debit card cash rewards of 1% on “Qualifying Purchases” per month. “Qualifying Purchases” include signature transactions only where the client selects “credit” as the transaction type. Transactions made at, with, or through the following vendors will not be counted towards the minimum number of debit transactions requirement for Zeugma Plus or receive the 1% cash back regardless of if it is a transaction where “credit” is selected as the payment type: Google Wallet, PayPal, Venmo, Square Cash, MoneyGram, or any other cash transfer, wire transfer or payment made through any money movement app, website, vendor or institution. Bonuses are subject to IRS tax reporting requirements IRS 1099-MISC}