An interest-bearing checking account can be a powerful financial tool to help your money grow. At Tyndall, our Tyndall First account is that powerful tool. 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?

The best checking accounts are the ones that reward you! An interest-bearing Tyndall First account is a checking account that 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. Tyndalls First 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? 

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.