If you want the money in your checking account to do more than just sit there, you may want to consider a rewards checking account.

After all, you may have a credit card that offers you cash back, points, or miles every time you spend money. So why shouldn’t your debit card offer the same?

That said, there can be some downsides to a rewards checking account. Here’s what you need to know about rewards checking accounts and whether they’re something you need in your financial tool belt.

What is a rewards checking account, and how does it work?

A rewards checking account is a checking account that offers something a little extra, such as cash back on purchases.

A number of online banks and credit unions offer rewards checking accounts, including:

• American Express National Bank

• Axos Bank

• Consumers Credit Union

• Discover Bank

• Lending Club Bank

• TAB Bank

• Upgrade

In many cases, rewards checking accounts don’t charge a monthly maintenance fee. However, to earn rewards, there will likely be requirements you have to meet, such as maintaining a minimum balance or setting up direct deposit.

Banks and credit unions that offer rewards checking accounts generally will either give you some interest on your balance or cash back on purchases — though having limits up to a certain amount is common.

For instance, The Discover Cashback Debit card returns 1% in cash to customers for qualifying purchases up to $3,000 a month (so you could earn $30 a month). Upgrade’s Rewards Checking Plus offers 2% cash back on many debit card purchases, up to $500 a year. After you hit $500 in cash back, you’ll continue to earn 1% cash back on purchases.

Rewards checking account vs. traditional checking account

A traditional checking account is a basic account that allows you to deposit money and make withdrawals to pay for goods and services. Sometimes, there’s a monthly maintenance fee. And if you spend more than your available balance, you’ll likely be subject to a non-sufficient funds fee or an overdraft fee (though some banks offer overdraft fee refunds).

In other words, a traditional checking account doesn’t offer many bells and whistles, aside from maybe a sign-up bonus. A rewards checking account, on the other hand, offers something extra, usually in the form of cash back on purchases.

Pros and cons of rewards checking accounts

While you might assume rewards checking accounts are nothing but positive, there can be some disadvantages to consider as well.

Pros:

• Rewards: This is what draws most people to rewards checking accounts. Instead of your money simply sitting in your checking account, you earn cash back on the spending you have to do anyway — essentially lowering the total cost of those purchases.

• Additional perks: Rewards checking accounts may come with additional perks, such as a sign-up bonus, high interest, or ATM fee reimbursement.

Cons:

• Possible fees. If your bank charges you a monthly maintenance fee for your checking rewards account, that fee may diminish what you earn in rewards. Ideally, you should choose a free checking account that also offers cash back. Or at the very least, the requirements to get monthly fees waived should be easy to meet.

• Restrictive rules. Banks may require you to maintain a large minimum balance in order to earn rewards. Or you might need to set up monthly direct deposits for a certain dollar amount. Again, be sure these requirements are feasible before opening an account.

Is a rewards checking account worth it?

A rewards checking account may be exactly where you should park your money, but whether it’s really right for you will always depend on your financial situation and objectives.

Many rewards checking accounts offer customers plenty of extras with reasonable requirements. Others may have eligibility requirements that are too tricky for some customers to meet.

If you’re interested in opening a rewards checking account, be sure to compare several options and choose one that makes sense for your finances.