Besides earning interest, what is a difference between a basic checking account and an interest-bearing checking account?

Basic accounts are more likely to have a minimum balance

Basic accounts are more likely to use a debit card

Interest-bearing accounts are more likely to have a minimum balance

Interest-bearing accounts are more likely to use a debit card

Question

Melvin Jefferson

Social Studies

3 October, 05:44

Besides earning interest, what is a difference between a basic checking account and an interest-bearing checking account?

Basic accounts are more likely to have a minimum balance

Basic accounts are more likely to use a debit card

Interest-bearing accounts are more likely to have a minimum balance

Interest-bearing accounts are more likely to use a debit card

+5

Answers (1)

Know the Answer?

Josie Adkins · Answer 1

Interest-bearing accounts are more likely to have a minimum balance.

Explanation:

A basic checking account is primarily used for everyday transactions. This sets it apart from the interest-bearing account (like the Savings Account) and this is also the reason why it doesn't necessarily need a minimum balance. On the contrary, interest-bearing accounts require a minimum balance and this balance earns a particular rate over time. It is meant for "saving money." Thus, it is common to have the interest-bearing account as a separate account (reserved for saving) compared to the basic checking account.

Thus, this explains the answer.