Should I Get A Checking Account That Pays Interest?
If you can get "interest bearing" checking with a basically free checking account, go for it!
Here's what we mean by "basically free:"
- You aren't required to keep a large minimum balance.
- You can write at least 20 checks per month.
But don't get an interest-bearing checking account if you end up paying extra for the account.
Here's what we mean:
- Most interest-paying checking accounts pay very low interest rates.
- Some pay less than one tenth of one percent!
- Most pay no more than one percent.
- Many interest-paying accounts require you to keep a very large balance (hundreds of dollars) if you're actually going to earn interest.
- Most consumer groups think these accounts require you to keep too much money in the account, and don't pay good interest.