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Unless you keep all of your bills stuffed under the mattress, you probably have a bank or credit union checking account where you store your cash. But what if you could earn a little interest with an interest bearing checking account? Typically, the advantages of a checking account are limited to check-writing privileges and the ability to withdraw money. However, there are checking accounts out there that can also pay you a little interest on your balance. They are an excellent option for people who want to earn a little bit of extra money on their checking account balance but still have easy access to their funds.

girl reviewing her interest bearing checking accounts

While the interest rates on these checking accounts are typically lower than those offered by savings accounts or certificates of deposit, they can still provide a small amount of extra income. This can be especially helpful for someone who keeps a significant balance in their checking account, or for people who are looking for a way to maximize the return on their money.

Advantages of interest bearing checking accounts.

There is a wide range of features and benefits. Many of these accounts offer online and mobile banking, as well as the ability to withdraw cash from ATMs. Some accounts may also offer overdraft protection, which can help you avoid fees if you accidentally withdraw more money than is in the account. Additionally, many interest-bearing checking accounts come with tools and resources to help you manage your money, such as budgeting tools and financial education resources.

When shopping around for an interest-bearing checking account, there are a few things you should consider. First, it’s important to look for an account that offers a competitive interest rate. While these rates can vary widely from one bank to another, it’s generally a good idea to shop around and compare offers from multiple banks to find the best deal.

You should also consider the fees associated with the account, as some checking accounts may charge monthly maintenance fees. According to a Bankrate survey, customers on average needed over $500 minimum in their accounts to avoid monthly service fees. Finally, you should think about the features and benefits that are most important to you and look for an account that offers the ones you need.

Interest bearing checking accounts can be a good option for people who want to earn a little bit of extra money on their checking account balance, while still having all the advantages of regular checking accounts. By shopping around and comparing offers from multiple banks, you can find an account that offers a competitive interest rate, a range of features and benefits, and low fees. With the right account, you can make the most of your money and enjoy the convenience of easy access to your funds.

*DISCLAIMER: this educational article is for informational purposes only. We highly recommended you consult your financial advisor for financial advice.

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