Guide to Interest-Bearing Checking Accounts
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Do Checking Accounts Earn Interest?
How Interest-Earning Checking Accounts Function
What Is the Highest Interest Rate on an Interest Checking Account?
Pros and Cons of Interest-Bearing Checking Accounts
Earn interest on the account balance: You can obtain money from the interest on the account balance, which regular checking accounts don't provide. Fund accessibility: You can access your funds in various ways — through debit cards, checks, electronic payments, and online bill pay. You'll also benefit from other perks, such as online banking, banking apps, automatic payroll and more. Backed by your institution: Banks and credit unions offer backing by the Federal Deposit Insurance Corporation (FDIC) and National Credit Union Administration (NCUA), respectively. NCUA and FDIC insurance covers up to $250,000 for each account owner for each type of account. Low fees: You likely won't pay hefty maintenance fees on your account and some financial institutions will not charge any fees.
Balance requirements: Interest-bearing checking accounts often require you to meet a minimum balance. For example, you may need to keep at least $1,000 in the account to avoid a monthly maintenance fee. May not have a competitive interest rate: Not all interest-bearing checking accounts offer a high interest rate. Some interest-bearing checking accounts might offer a lower interest rate than a high-yield savings account. Note that you may not earn any interest if you fail to manage your account.
Interest-Bearing Checking Accounts vs Regular Checking Accounts
Interest Checking Accounts vs Savings Accounts
Interest Checking Account Eligibility
Finding Higher Interest-Bearing Checking Accounts
Frequently Asked Questions
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