Best Checking Accounts Rates

Checking accounts are a necessary and extremely important tool for managing your finances properly. Checking accounts are a type of transaction account by which money on deposit is immediately available for withdrawals of any type including checks and bill pay transactions. There are indeed checking accounts that pay interest for the money on deposit, but the interest rates tend to be very low while the minimum amount needed for deposit is extremely high.


Typically the best interest rate on a checking account range from .5%-1% maximum earning potential. The minimum deposit required to earn interest and not be charged a fee is upwards of $10,000. The reason the interest rate is so low on a checking account that does earn interest is because of the way the banks handle the money once it is on deposit with them. By law, banks are legally required to hold onto a 10% reserve of checking account deposits because this money needs to be liquid and easily accessible to depositors at all times. Because of that legal obligation, the financial institution managing your checking account must reduce the amount of interest they will pay in order to maintain their profit margin.

If you are interested in earning a higher rate of return, then the best checking account interest rate currently available, there are better strategies. You should open both a checking account and a savings account at the same bank, link the two and make sure that you receive online banking complimentary to your accounts.

Daily you can check the balances of your checking and savings and make sure you have enough money plus a cushion in your checking account to cover any outgoing expenses. The extra money can be automatically transferred into your savings account from the comfort of your computer, thus the spare cash will earn every spare penny it is entitled too. Although an interest bearing checking account with the best rates available may sound like an enticing opportunity, there are superior ways to managing your finances.