Checking accounts with interest allow the account holder to earn interest on easily accessible cash, and not all checking accounts bear interest! These special accounts combine features of both checking accounts and savings accounts, making them an excellent choice for many consumers depending on their financial needs.
So, what is a checking account with interest, and what are the benefits of opening this type of account? Stay tuned to learn!
Types of Checking Accounts
There are many different types of checking accounts; however, some of the most common checking accounts include:
- Free checking accounts
- Traditional checking accounts
- Second chance checking accounts
- Student checking accounts
- Senior checking accounts
- Business checking accounts
- Interest bearing checking accounts
With so many options out there, it’s important to consider which type of checking account will best suit your needs. For people who want to earn interest on their easily accessible cash, an interest-bearing checking account can be one of the best choices.
Interest Checking Account Defined
A checking account allows the account holder to make payments from the account. Debit card transactions and paper checks can be used to make purchases from the checking account and use the money held in the account. An interest checking account works like any other checking account, but also pays the account holder interest on the balance kept in the account. Interest rates depend on the specific institution offering the account and other factors.
Benefits of a Checking Account with Interest
There are many benefits to a checking account that bears interest, including:
- Earn Interest: Earning interest on the money deposited into the account holder’s checking account is the biggest benefit of an interest checking account. The money (including the earned interest) stays liquid, which means the account holder can easily access it at any time.
- Online & Mobile Banking: Interest checking accounts are usually accompanied by convenient online and mobile banking features that allow you to manage your money anywhere, anytime.
- Account Insured: If an interest checking account is opened with a financial institution insured by the Federal Deposit Insurance Corporations (FDIC), it will be insured up to $250,000.
It is important to select the right type of checking account for your needs. If you want to learn more about the benefits of a checking account with interest, visit our landing page and apply online today!