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Answered 2011-07-14 14:04:12

No. Checking accounts in general do not usually earn interest. Especially free ones, if you want to earn interest, you should check on different savings accounts and check with your bank.

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Does all money deposited in a bank earn interest?

No. Money deposited in checking/current accounts do not earn any interest.

Can a corporation earn interest on a checking account?

Yes - if the bank is giving an interest on the checking account. But, banks usually pay very little or 0% interest for checking accounts because of the frequent transactions and the liquid nature of the money in it.

Should interst earned on a checking account be added to the checking account balance?

There is a way to earn interest on a checking accounts and can be added to the account. You will have to back through a credit union.

Are partnerships allowed to earn interest on their checking accounts?

No reason in the world why a legitimate business couldn't find a bank that will give them interest on their checking account. It isn't a common thing, but there is certainly nothing that prevents it legally.

How do you earn interest?

There are many ways of earning interest, the best of which is a long term Certificate of Deposit (or CD). Other decent ways include checking and savings accounts.

What is the current interst rate for a checking account?

Checking Accounts are also called as Current Accounts. A checking account is one in which customers keep some money and use it for their day to day transactions. The money in this account does not earn any interest and is available for usage to the customer at all times. So the interest you may earn is either less than 1% or even 0 in many cases.

What means financial interest?

Financial interest is basically free money that accrues on your savings or checking accounts. In many ways, interest is almost a gift from the financial institution for using their products and services. Earning interest, however, does depend on the amount of money you have in your accounts. If your account is low, chances are you will earn little to no interest. If they are high, you can earn a substantial amount of interest per month.

Does interest apply to dormant savings accts?

No. Banks will offer interest only on active bank accounts. Dormant accounts are inactive and do not earn any interest. Customers need to keep their accounts active if they wish to earn an interest through their accounts

Does Wells Fargo offer free personal checking?

It doesn't seem that wells Fargo offers free checking. That's truelly unheard of, most banks offer free checking. But they do offer free trades. And they offer checking accounts that earn interest.

What are the benefits and drawbacks of free checking accounts?

The benefits are usually that there are no monthly fees, no minimum balance, and only a small balance needed to open the account. The drawbacks are that you do not earn interest in most free checking accounts, and you are limited in the services that you can use. For most regular people, a free checking account serves them well. For wealthy people, free checking does not allow them to gan interest on the large amount of money they have,

Does BB and T checking account earn interest?

No, only their savings account accrues interest.

Can a corporation have an interest bearing checking account?

A corporation that is a for profit corporation cannot have an interest bearing checking account. However, it can have an earnings credit which is similar to an interest rate. With an earnings credit the interest earned on the Checking account is used to offset monthly fees/ charges on the account, if interested earned using the earnings credit is more than the total amount of fees/ charges it is considered a surplus and does not accrue to the checking account balance. A non profit corporation such as a 501.c.3 Can earn interest on Checking accounts due to the not for profit status.

What is the high interest savings accounts?

High interest savings accounts are savings accounts that banks give you that let you earn lots of interest with benefits. They usually are the toughest to get because you need to deposit a certain amount of money.

Why do savings accounts earn interest?

Any Deposit account in a bank (except current/checking accounts) earn an interest. The deposit that you hold in your account is cash that the bank uses for granting loans and other services to other customers. Since the cash in savings accounts are very liquid banks have limited options of making money out of it and hence they give us very little interest on those accounts. Where as in case of CDs and fixed deposits the bank knows that a certain amount of cash is going to be in their holding for a certain period of time and can plan to utilize it effectively and hence the interest offered on them is much higher than savings accounts.

Can small businesses earn interest on their checking account?

Absolutely. Just go into any bank and ask for a business checking account that pays interest. You might have to deposit a certain amount to open it and keep a certain level of average balances to avoid charges and to earn the interest they offer. Just ask

Is a checking account or savings account better?

Ideally you should have one of each. Checking give you more access to your money, but do not pay usually pay interest. Saving accounts are designed for people to have an easy place to store the money they do not plan on spending immediately. Savings accounts tend to earn small amounts of interest. It is actually better to invest money you are not planning on spending anytime soon to make more money

Does the government tax savings accounts?

Any interest you earn will generally be taxable in the year that it is earned.

How are a savings account and a checking account similar How are they different?

Checking accounts are DDA, or demand deposit accounts. It's a transactional account that is intended to secure your money but provide quick access for you to withdraw funds in various ways, such as with a debit card, ATM withdrawals, checks, direct debits, and electronic payments. Some checking accounts have a very low interest rate (typically only for accounts with a high daily balance). Savings accounts are deposit accounts that are not considered transactional. Your money is kept secure in a savings account and also earns interest. You can withdraw the money at the bank with a withdrawal slip, by transfer, or with an ATM card. You cannot use checks or debit cards. Withdrawals are limited to 6 per month by the Federal Reserve Board under Regulation D. Savings accounts are basically a way to earn interest while still keeping the funds liquid. Accounts that are not liquid, such as certificates of deposit, typically yield higher interest but withdrawals are not allowed or carry penalties.

Is there a checking account from Bank of America that will allow me to earn interest while my money is in the bank?

There is an Advantage with Tiered Interest Checking where you can earn up to 0.25% APY. If you have a Bank of America Mortgage, or you keep your average daily balance at $10,000, the account has no monthly fee. Otherwise, a monthly fee applies.

What ar the benefits of using Abbey Online Banking?

There are many benefits to using Abbey Online Banking. For example, there are no ATM fees, and you can earn interest from your checking account. If you're looking to save there is no minimum account balance for savings accounts.

What is the difference between similarities and differences of the Islamic and regular current savings and investment fixed deposit accounts?

As per the Islamic law of Sharia, giving and getting interest is prohibited. So Islamic accounts would not give interest to the customers and nor would the money in those accounts be lent to people to earn interest out of it.

Banks pay their costumers interest on the money in their accounts for what reason?

Banks pay their consumers interest on their money in their accounts because, the same money is what the bank use to lend loans to other customers. As they are going to earn an income through the interest they charge the loan customers, banks give a portion of that interest as interest for the customers who have deposited their money with them.

Can certain banks allow you to gain interest on a checking or savings account?

Yes! All banks offer many kinds of Checking and Savings accounts. Typically Savings accounts earn higher interest rates than Checking accounts. There are a couple savings accounts that earn the most interest: Money Markets and CD's (Certificate of Deposits). Money Markets are great because most banks allow you to write a few checks each month, however you usually have to maintain a pretty high balance (this varies at different banks.. ask about it at your bank). CD's are great because they earn an even higher interest rate however unfortunately you are not supposed to withdraw from them. and can be charged a fee for doing so. When you open up a CD you chose a certain amount of time to set all of the money aside in that account. The times are usually 6 months, 11 or 12 months, 18 months, 24 months, 3 years, 4 years, and 5 years however different banks will offer different amounts of time. No Catch CD's are rarely offered but are great because they allow you to withdraw once without receiving a penalty fee. You open up a CD if you have some extra money you are able to set aside for a while that will earn high amounts of interest for just not touching it!

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