Investing Ideas: Checking Accounts That Pay Interest

Every so often you find a deal that you want to pass on to your friends. Checking accounts which pay interest when you keep the required available balance happens to be a deal worth passing on. It's a winning situation. Push your dollar further with an interest bearing account.


Types of Accounts:

Basically, banks group these checking accounts into two different groups: rewards checking or plain interest bearing accounts. Although both accounts pay you, rewards checking accounts go a little further to grant you the benefits of banking. For instance, rewards checking accounts bear higher interest rates than plain interest bearing accounts; guaranteed interest rates start above 2% APY on rewards checking. Also, banks encourage participation in community activities like high school sports and other civic events. You may find a bank in your community which gives passes to some events for rewards account holders.


vs. CDs:

Which ever you decide works for you, remember that interest bearing checking accounts exist to encourage consumers to use electronic payments. You will be required to make at least 12 debit purchases each billing cycle, pay bills online, and maintain a minimum required balance. Still, rewards accounts may be better than cds which penalize the consumer for withdrawals prior to maturity dates and are less liquid than demand accounts.












References:
-http://www.money-rates.com/rewardschecking.htm
-http://www.bankrate.com/brm/news/chk/20071105_reward_checking_a1.asp