Skip to main content
APY (Annual Percentage Yield) reflects the interest earned on your account balance over a year, including the effect of compounding.
  • Checking APY applies to balances held in your checking account
  • ATP APY applies to funds held in your Automated Tax Planning (ATP) account
Rates as of October 1, 2026 Standard accounts and accounts opened from October 1, 2026
  • 0% APY on checking balance
  • 1% APY on ATP (tax savings) balance
Existing Karat Premium subscribers
  • 1.75% APY on checking balance
  • 2.75% APY on ATP (tax savings) balance
Earned yield is calculated daily and paid monthly on the first of each month for active accounts with eligible balances.
Rates are tied to the Federal Reserve rate environment and are subject to change. Updated rates will be reflected in this article when changes occur.
Karat is a fintech company, not an FDIC-insured bank. Banking and Card services provided by Grasshopper Bank, N.A., First Internet Bank of Indiana, and Cross River Bank, Members FDIC. APY rate as of October 1, 2026, subject to change.