What is an interest-bearing checking account?
What are the benefits?
There are several key advantages to opening an interest/dividend checking account:
- Accessibility of funds. Unlike a savings account, the funds in an interest-bearing checking account can be accessed at any time via debit card, paper checks, automatic electronic payments, and online bill payments.
- Interest. Interest will accrue on the account balance and be paid out monthly.
- Security. Tyndall is insured by NCUA.
- No fees. Tyndall First account has no fees!
- Banking benefits. Tyndall First account includes online banking, overdraft protection, mobile banking app, automatic payroll deductions, and more. You can also open a Tyndall First account online!
What are the disadvantages?
Interest-bearing checking accounts do have some disadvantages compared to traditional checking accounts. Some require you to pay a small monthly maintenance fee, but with a Tyndall First account, there are no monthly maintenance fees.
Why would a consumer choose an interest-bearing or dividend-bearing checking account over a savings account?
As mentioned, interest-bearing checking accounts offer the key features of checking accounts and savings accounts. This provides greater flexibility and makes these accounts an excellent option for an individual who is seeking to grow their money without tying it up in case they need to withdraw funds in the near future.