A Momentum checking account is a rewards-based checking account offered by Axos Bank that pays you cash back on debit card purchases and gives you interest on your balance

Momentum is not a traditional checking account where you simply store money and pay bills. Instead, it's built around earning rewards. You get cash back on everyday purchases made with your debit card—typically 1% back on purchases up to a certain monthly threshold, then a lower rate after that. You also earn interest on the money sitting in the account, which varies but has historically been competitive compared to standard checking accounts.

The account is offered by Axos Bank, a federally chartered online bank. There is no monthly maintenance fee, and there are no minimum balance requirements to open one. You can use it as your primary checking account or as a secondary account specifically for earning rewards on debit card spending.

Key Takeaways

  • Momentum checking pays 1% cash back on debit card purchases up to a monthly spending cap, then a lower percentage after that cap is reached.
  • The account also earns interest on your balance, with rates that change based on market conditions and Axos Bank's current offerings.
  • There is no monthly fee, no minimum balance requirement, and no overdraft fees if you stay within your balance.
  • You access the account through Axos Bank's online platform and mobile app, with no physical branch locations.
  • The cash back and interest rewards are only available if you meet specific requirements, such as setting up direct deposit or maintaining a minimum number of debit card transactions per month.

How the cash back rewards work

The cash back structure on Momentum checking has two tiers. You earn 1% cash back on debit card purchases up to a set amount each month—historically this has been around $5,000 to $10,000 in purchases, though Axos Bank can change this limit. Once you exceed that threshold, the cash back rate drops to a much lower percentage, usually 0.10% or less on additional purchases that month.

The cash back is calculated and deposited into your account monthly. You do not have to redeem it or take any action—it simply appears as a credit. This means if you spend $3,000 on your debit card in a month and the cap is $5,000, you would earn $30 in cash back. If you spend $7,000, you would earn $30 on the first $5,000 and roughly $2 on the remaining $2,000, depending on the exact rate.

One important catch: to receive the cash back rewards, you typically must meet certain requirements set by Axos Bank. These often include setting up direct deposit to the account or completing a minimum number of debit card transactions per month. If you do not meet these requirements, the cash back rate may drop to zero or a much lower rate. Check the current terms on Axos Bank's website before opening the account, as these requirements can change.

Interest earnings on your balance

Momentum checking also pays interest on the money you keep in the account. The interest rate varies based on the current market environment and Axos Bank's decisions. In recent years, rates have ranged from around 0.40% to over 4%, depending on when you opened the account and what the Federal Reserve's rate environment was at that time.

Interest is compounded daily and deposited monthly into your account. This means you earn interest on your interest as well as on your principal balance. The higher your balance and the higher the interest rate, the more you earn. Unlike the cash back rewards, there are typically no special requirements to earn interest—it accrues simply by holding money in the account.

Keep in mind that interest rates on savings and checking accounts change frequently. Axos Bank can lower the rate at any time, and rates tend to fall when the Federal Reserve cuts its benchmark rate. If earning interest is a major reason you are considering this account, compare the current rate to other high-yield checking and savings accounts before deciding.

How to access your money and pay bills

Axos Bank is an online-only bank, which means there are no physical branch locations. You access your Momentum checking account through Axos Bank's website or mobile app. You can transfer money between your own accounts, send money to other people using external transfers, and pay bills through the online bill pay system.

You receive a debit card with the account, which you can use at ATMs and retail locations. Axos Bank does not operate its own ATM network, but it participates in the Allpoint network, which includes over 55,000 ATMs worldwide. You can withdraw cash for free at any Allpoint ATM. If you use an out-of-network ATM, Axos Bank typically reimburses the fee, though you should confirm this in the current terms.

Transfers to and from external banks typically take one to three business days. If you need to move money quickly, you can use your debit card to make purchases or withdraw cash immediately. Direct deposit to the account is also available and usually processes within one business day.

Fees and overdraft protection

Momentum checking has no monthly maintenance fee, no minimum balance requirement, and no overdraft fees. This is one of the account's main advantages over traditional checking accounts at brick-and-mortar banks. You will not be charged for having a low balance or for going negative, as long as you do not overdraw the account.

However, if you do overdraw—meaning you spend more than you have in the account—Axos Bank will decline the transaction or charge an overdraft fee depending on the situation. The best approach is to monitor your balance through the app or website to avoid this. You can also set up balance alerts to notify you when your balance drops below a certain amount.

There are no fees for using your debit card, transferring money between accounts, or paying bills online. Wire transfers may have a fee, typically around $15 to $25 for outgoing wires, though this can vary.

Who this account makes sense for

Momentum checking works best for people who spend regularly on their debit card and want to earn rewards on those purchases. If you rarely use a debit card or prefer to pay with credit cards, the cash back rewards will not benefit you much. Similarly, if you cannot meet the requirements for cash back—such as setting up direct deposit—you lose a major incentive for opening the account.

The account also appeals to people who want to earn interest on their checking balance without moving money to a separate savings account. Since you can earn both cash back and interest in one account, it reduces the need to juggle multiple accounts. However, if you need frequent access to a physical branch or prefer in-person banking, an online-only account is not a good fit.

People with irregular income or those who cannot maintain a direct deposit may find the requirements for full rewards too restrictive. In that case, a standard checking account at a local bank or a different online bank might be a better choice.

Comparing Momentum to other checking accounts

Momentum checking is one of several accounts that offer both cash back and interest. Other online banks like Ally, Charles Schwab, and some credit unions offer similar features. The key differences are the cash back rate, the monthly spending cap, the interest rate, and the requirements you must meet to earn rewards.

Traditional checking accounts at brick-and-mortar banks rarely offer cash back on debit purchases, and many charge monthly fees. However, they do offer the advantage of physical branches and in-person support. High-yield savings accounts offer higher interest rates than checking accounts but do not offer cash back and typically limit the number of withdrawals you can make per month.

Before opening a Momentum account, compare the current cash back rate, interest rate, and requirements to other options. Rates and terms change frequently, so what was the best option six months ago may not be the best option today. Use online comparison tools or visit each bank's website to see the current terms side by side.

Frequently Asked Questions

Do I have to use direct deposit to get the cash back rewards?

Most Momentum checking accounts require direct deposit to earn the full cash back rate. If you do not set up direct deposit, the cash back rate typically drops to zero or a much lower percentage. Check Axos Bank's current terms to confirm what requirements apply to your account, as these can change.

Can I use this account if I do not have a regular job or income?

If you cannot set up direct deposit because you do not have regular employment income, you may not meet the requirements for cash back rewards. However, you can still open the account and earn interest on your balance. Some people use other forms of regular deposits, such as Social Security or pension payments, to meet the direct deposit requirement.

What happens if the interest rate drops?

Axos Bank can lower the interest rate at any time. If the rate drops significantly, you can close the account and move your money to another bank without penalty. There is no early closure fee. However, you will lose the ability to earn cash back on debit purchases once you close the account.

Can I use this as my only checking account?

Yes, Momentum checking can serve as your primary checking account. You can set up direct deposit, pay bills, transfer money, and use your debit card for all your everyday needs. The main limitation is that Axos Bank has no physical branches, so you cannot deposit cash or checks in person.

How do I deposit checks if there are no branches?

Axos Bank offers mobile check deposit through its app. You photograph the front and back of the check and submit it through the app. The check is deposited into your account, typically within one business day. This works for most personal checks, though there may be limits on the amount or number of checks you can deposit per day.