The term pay interest is usually used along with loan accounts. This is the charge/money you pay a bank for the lending facility they have extended to you.
For Ex: If I borrow USD 1000 from a bank @ 5% rate of interest per year, I have pay $50 as interest every year to the bank for the $1000 loan they gave me. If I plan on paying it in 10 equal installments, I will pay $105 every month for 10 months to repay the $1050 I owe the bank. Here the $5 I pay every month can be considered as "Paying Interest on my Loan Account"
Yes, many banks pay interest on the money you deposit into your savings account.
It varies, interest is typically paid monthly or quarterly depending on the type of account it is. Checking accounts ususally pay interest monthly while savings and certificates typically pay interest quarterly. It is up to the bank on how often they pay interest.
Yes, you may have to pay taxes on the interest earned from the funds in your checking account, but not on the actual funds themselves.
because the bank lends money out at a higher interest rate
Yes, if you still owed a balance at the time the account was closed. Just because a company closes an account does not mean that any balances that are owed to them disappear. If your account was closed and there was still a balance outstanding and you did not pay that balance, the company has every right to collect the balance and any interest outstanding.
Yes, many banks pay interest on the money you deposit into your savings account.
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Yes, most savings accounts pay interest.
The only tax you would pay on money in a checking account is any interest the money made if it is a interest type of account.
No. If your checking account in non interest bearing, then the you will have no interest to report on your income tax return and therefore no tax to pay.
It varies, interest is typically paid monthly or quarterly depending on the type of account it is. Checking accounts ususally pay interest monthly while savings and certificates typically pay interest quarterly. It is up to the bank on how often they pay interest.
Yes, you may have to pay taxes on the interest earned from the funds in your checking account, but not on the actual funds themselves.
I am a survivor on a jtwros account. Do i pay tax if it is under @600.000. Or do i just pay tax on the interest?
because the bank lends money out at a higher interest rate
Pay it off.