How To Fight Depression

The Way To Deal And Fight Depression Naturally

What Is an Interest Checking Account?

An interest checking account offers you the ability to make your money work a little harder for you. Available at banks and credit unions, these accounts pay a competitive rate of interest (also known as compounded interest) on the balance in your account and typically report it to you on a monthly basis. In addition to the benefits of a regular checking account, such as direct deposit, online banking and mobile app access, you may be able to avoid any monthly fees by meeting certain requirements or maintaining a specific minimum balance in the account.

A checking account that earns interest is sometimes referred to as an “interest-bearing” or a “rewards checking account,” although this distinction is not always precise and may be misleading for some consumers. In general, a rewards checking account is one that gives you the option to earn cash back, points or other perks in addition to regular banking services, but it also can include features that are typical of an interest checking account. An example is the Aspiration Spend & Save checking account, which allows you to earn cash back on debit card purchases as well as the benefit of interest on your overall balance.

An interest-bearing checking account is similar to a traditional checking account in that funds are easily accessible through a debit card, paper checks and automatic electronic payments. Unlike savings accounts, however, these types of checking accounts are designed to grow your money by earning a return on the cash you keep in them over time, allowing you to reach short-term or long-term financial goals faster.

Regardless of which type of checking account you have, you should carefully review the terms and conditions of your bank or credit union’s accounts before opening them. Some Interest Checking Account have higher monthly maintenance fees than those that don’t, while others require a larger minimum balance to waive the fee. You should also consider the rates of interest offered, as they vary by institution.

Unlike the savings accounts that many children learn to use with their parents, most adults use saving accounts to stash money from paychecks, allowance or other income sources until they are ready for it to be used. These accounts are often the first place that people start to learn about making their money work for them, by putting it into an account with potential returns on it.

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