Checking Account Rates
The average interest rate for a checking account today is 0.04 percent, according to the FDIC, so if you’re getting more than that, you made a good choice. If you’re not, consider switching accounts. Whatever type of checking account you choose, make sure your money is FDIC- or NCUA-insured. In addition, look for an account with no or low fees — you don’t want your hard-earned interest to be eaten up with costs for things like account maintenance. For more information on Checking Accounts, click here.
Many banks and credit unions offer interest for checking accounts. Because online banks have no overhead like brick-and-mortar banks, they often pass on those savings to customers in the form of better rates.
Be mindful when you are researching interest checking accounts. Some require minimum balances for that high rate to kick in or require you to have a certain number of automatic deposits to your account each month. Some have limits on check writing, withdrawal and debit transactions. Try to find a financial institution that doesn’t charge for ATM usage, too.
Your APY is reflects the total amount of interest you get on your account, based on your rate and a 365-day period of compounding. Keep in mind that your interest checking account’s APY will fluctuate, unlike a fixed rate of interest on, say, a certificate of deposit.
If you do your homework you can find an interest-bearing checking account with a good rate that applies to any balance — and no fees. You might even your first order of checks for free. These types of account do exist, so make sure you find one and park your money in a place where it will work the hardest for you.