Is an interest-bearing checking account right for You?

An interest-bearing checking account might be the solution. An interest-bearing checking account, as the name implies, offers more competitive interest rates than traditional checking accounts. Some even offer interest comparable to high-yield savings accounts. While some might offer interest rates of only 1%, it’s better than nothing!

What is interest earning checking account?

Interest earning checking account definition is simply to earn interest, but that can vary widely. Typical interest rates offered by checking accounts are from 0% to 0.5%. Interest bearing checking accounts can offer APY up to 5.30%, but many also offer interest rates of 1% to 3%.

What is the difference between an interest-bearing and a regular checking account?

Earning interest is really the only difference between an interest-bearing and regular checking account, though an interest checking account may require a higher balance to avoid a monthly fee. There are exceptions, usually at online banks.