What are the Benefits of an Interest-Bearing Checking Account?

So you're looking to open a new account to keep your savings and wondering if you should go with another savings account or an interest-bearing checking account. Before deciding, consider the benefits of an account like our Beyond Checking account. 

An interest-bearing checking account — or a dividend-bearing checking account — can be a powerful financial tool to help your money grow. Let's take a closer look at this popular account and what sets it apart from other financial accounts. 

What is an interest-bearing checking account?

An interest-bearing checking account like our Beyond Checking account accrues interest/dividends at a set rate. Traditional checking accounts do not earn interest/dividends since they're designed to be used to hold funds for everyday expenses. Savings accounts do earn interest, but the accessibility of funds is limited because these accounts are designed and intended to be used for long-term savings rather than everyday transactions. A checking account that earns interest blends the best of these two accounts by offering an attractive rate or annual percentage yield (APY) while allowing for greater accessibility of funds over a savings account. 

What are the benefits of an interest checking account? 

There are several advantages to opening an interest/dividend checking account: 

• Accessibility of funds. Unlike a savings account, the funds in your interest checking account can be accessed at any time with your debit card, paper checks, automatic electronic payments, and online bill payments. 
• Interest. Interest will accrue on the account balance and be paid out periodically.
• Security. Our Beyond Checking account is backed by the National Credit Union Administration (NCUA). 

What are the bonus rate requirements of an interest checking account? 

Interest checking accounts have some requirements that need to be met to receive the bonus rate. 

For example, our Beyond Checking account has three requirements that are easy to meet:

1. Make 15 debit card transactions with a minimum amount of $5 each per month
2. At least one Direct Deposit or ACH a month
3. Sign up and receive monthly e*statements

When you meet these requirements, the $5 monthly fee is waived, and the bonus rate is paid. $12 in ATM surcharges will also be refunded for the month. 

Why would a consumer choose an interest-bearing or dividend-bearing checking account over a savings account?

Interest checking accounts offer the key features of checking accounts and savings accounts. Unlike a savings account, which does not allow the account holder to withdraw funds as needed, you can access these funds in your checking account anytime. This provides greater flexibility and makes these accounts an excellent option for an individual seeking to grow their money without tying it up in case they need to withdraw funds in the near future. 

Are you ready to start putting your money to work with a dividend-bearing checking account? An Azura Credit Union Beyond Checking Account has one of the best bonus rates in the industry! Check out AzuraCU.com/Beyond for the most up-to-date information and rates!