Interest checking accounts are not new, but they have become more common with the emergence of online banks. Because online banks don't have the overhead of traditional banks, they can pass the savings on to customers in the form of great rates, including interest on checking accounts.
The day-to-day function of an interest checking account is much the same as a non-interest checking account. You can write checks, use debit cards to pay bills or make purchases, use ATMs to withdraw cash, and so on. But with a non-interest checking account, the bank simply holds your money, and sometimes even charges a monthly maintenance fee.
With an interest checking account, the bank pays interest on the balance in your account. While earning some interest is better than no interest, it is important that you understand the terms and conditions of each account you consider to avoid missing out on that earned interest due to unexpected fees. To begin with, you should compare annual percentage yields (APYs). The APY is a percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period. You also want to ask other questions about the checking account. For example, do you need to maintain a high minimum balance? Is ATM usage free? Will you be required to make a certain number of electronic deposits each month?
With Ally Bank Interest Checking, you earn interest on a balance of any size, there's no minimum deposit to open, and our rates are among the most competitive available in the country according to Bankrate.com. Plus you pay no monthly maintenance fees, get a free Debit MasterCard® and free standard checks. You can access your funds at any ATM with no fee from Ally Bank. We'll even reimburse you for the fees other nationwide banks charge to use their ATMs.
Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC