Are High Interest Checking Account Rates Subject to fluctuation?

If only we could turn back time and lock in high interest rates we saw a year ago. Unfortunately, no checking account ever has a fixed rate. All checking accounts are set up as “variable rate accounts”, which means the yield rate can change periodically. The high interest checking account rates are subject to fluctuation because they are based off the current market interest rates.


No two high interest checking accounts are alike and there are several things to consider when trying to locate one with the highest rate of interest:

  • Is the interest rate an introductory rate that is fixed for a brief period of time and will fluctuate afterward?
  • Is interest rate a variable rate that will cause fluctuations during the course of my account ownership?

The rate change can sometimes be in your favor, as rates can go up again. Interest rates for both borrowing and saving tend to be lower during a bad economy as the Fed lowers the short-term interest rate to generate more consumer and business spending. When the economy is good, the rates go up to stabilize the economy. One day, this current recession will pass and the rates for an online high interest checking account will go on an upswing.