An Interest Earning Checking Account is a savings account and checking account combined. You can make deposits and withdraws like a checking account but also earn interest like a savings account. It’s a win/ win! Most interest earning checking accounts are free, but some do charge you monthly fees. Stay away from those.
I personally use Schwab Bank and and like it a lot. It is an online bank account so I have never physically been to a branch. I further simplify my life, I set up direct deposit with my paycheck. At the end of the month, I use the online bill pay for all of my monthly expenses.
Why do this?
* The account is making more money for me. I earn interest on my paycheck the minute it is directly deposited. I don’t have to do a thing!
* My Schwab account also comes with an ATM card so I can make withdraws whenever I need to. They also reimburse for any ATM fees…which I love since most ATM’s will charge you.
* The only downfall is depositing a check. I work around it by keeping a local checking account along with my Schwab Account. I can then go to my local bank and deposit the check. Once deposited, I then have the option to transfer it online to my Schwab account to start earning interest. It’s one more step but an easy one to do.
Another great option is the HSBC Direct Account. The best part is there are NO MINIMUM DEPOSITS and NO FEES and its FDIC INSURED.