Checking Accounts
Checking account were created just for rolling cash in and out. Banks benefit because it increases the insured assests they can claim they have. Also they lend that money out overnight (when you can’t get to it) to other banks for a healthly interest payment.
Traditionally, checking accounts do not return interest. Due to the competitive global market, many banks are going with interest. Checking with interest, Yeah! Wait until you see your rate, my one account is getting a rocking 0.15% in interest. That’s less than 1/30 my worst online savings accounts return.
Instead of worrying about interest, focus on find an account that reduces it’s fees. In the end, you’ll actually come away we saving more money.
Case in point:
My second checking account receives no interest, but TD North has no fees for ATM cards. Seeing as I live in the Outback and can only get money through my local gas stations ATM, I take money out of the ATM 3-4 times a month. My other bank charges a $2.25 fee for this. So am looking at $9.00 a month ($108.00 per year) just to get my money.
Let’s compare that to my checking with the whopping 0.15% return rate! On average we have $2500 a month in there. That $3.75 a year I’m making with my Interest Checking. Hell I’ll stick with NO ATM FEES any day!