Upgrade Rewards Checking Preferred

Rewards Checking Preferred is now the only checking account Upgrade sells, having absorbed the older Rewards Checking and Rewards Checking Plus tiers. It is an app-based account with a Visa debit card, no monthly maintenance fee, no minimum balance requirement, and deposits held at Cross River Bank with FDIC insurance up to $250,000. Upgrade itself is a financial technology company, not a bank. The entire pitch is the debit rewards, and they are gated. Customers who set up Eligible Direct Deposits of at least $1,000 a month within 60 days of opening earn 2% cash back on convenience stores and drugstores, restaurants and bars including delivery apps, gas stations, utilities such as electric, gas, and phone, and monthly subscriptions like streaming. Accounts that fall below $1,000 in monthly direct deposits after that 60 day window earn no cash back at all, not a reduced rate. The 2% is capped at $500 in rewards per calendar year, which is $25,000 of eligible category spending. The exclusion list is where most people lose money. Groceries and supermarkets, including their affiliated gas stations, travel, medical bills, retailers and online merchants, rent, mortgage, insurance, and car payments all earn nothing. An Eligible Direct Deposit means recurring ACH from an employer, payroll, benefits provider, or gig platform; tax refunds, mobile check deposits, transfers from another bank, and Venmo or PayPal pushes do not count. Everything else is standard, with a few sharp edges. The checking account pays no APY, so interest only shows up if you add a Performance Savings account, which earns 3.05% APY with the same $1,000 monthly direct deposit (rate effective October 31, 2025) or 1.5% without it. Allpoint's 55,000+ ATMs are free, out-of-network withdrawals cost $2.50 plus the operator's fee, debit purchases outside the US or in a foreign currency carry a 3% fee, and an outbound domestic wire costs $20. There are no overdraft fees because Upgrade blocks overspending instead of covering it, mobile check deposit is reserved for the $1,000 direct deposit tier, and joint accounts for two holders are supported. Direct deposits under $5,000 can arrive up to two days early. Get this account if a $1,000+ paycheck already arrives monthly and your debit spending sits in gas, takeout, drugstores, and bills, where the $500 cap is reachable. Skip it if your income is irregular or self-funded, if most of your spending is groceries, online shopping, or travel, if you want a checking balance that earns interest, or if you spend abroad, where the 3% foreign fee applies.