What Is An Interest-Bearing Account?

When you save money, you want to put it in a safe place, have readily available access, and earn some interest. You don’t want to stash your cash in pillowcases, under your bed, or in a shoebox.

Managing your savings in your interest-bearing accounts is crucial for maximizing interest-earning while minimizing fees on all your funds.

These accounts are the safest and most liquid assets to manage and free from financial risk. They are part of your net worth, and more importantly, your liquid net worth.

Whether your bank is a traditional brick and mortar institution, or an online bank, they hold and use this funding source to make investments or loans to consumers.

When they use our money, it never disappears from our accounts. No worries. Our banks’ interest-bearing accounts are FDIC-insured up to $250,000 per account and are safe.

Types of Interest-Bearing Accounts Traditional Savings Account. You can link your savings account to your checking account to transfer funds, pay bills, and have a place for liquidity purposes.

High Yield Savings Account Typically, the high-yield savings accounts earn higher interest rates than the traditional savings rate.

Money Market Account ( MMA) MMAs will offer slightly higher rates than savings accounts, typically require minimum deposits ranging from $500 to $2,500, and some offer check-writing privileges.

Swipe Up to Read More