Make Money While Spending Money: Money Market Accounts

We all have bills to pay and most of us use a checking account to pay those bills, whether by check or online bill pay.  We all watch our account rise and fall with each paycheck and bill.  There is a way to watch your account rise and stay rising—at least, in the long run.  The high-yield checking account is the way to achieve this.

High-yield checking accounts earn a very competitive interest rate similar to a money market account.  It is possible to find accounts that earn more that a savings account, or even a CD, and you don’t have to lock your money away.  Why not earn interest on the money you use to buy groceries, pay your mortgage and other bills, while it waits for the end of the month.  The results may not seem like much at first, but over time, you will see the money earned on your interest multiplying.  Who says money doesn’t grow?  Banks know that keeping large sums of money, even for a few days, can earn money.  So why not join them and take advantage of the accounts they offer.

The high interest earned on a high-yield checking account does have a price, however.  But don’t worry the price is fair as long as you are aware of the terms, conditions, and restrictions.  These terms will vary from bank to bank, so do your homework.  Most accounts will require you to keep a minimum balance.  Make sure your income can maintain that balance because the fees incurred will see you suffer a loss, defeating the purpose of this account.  Banks make it easy for you to keep this balance, however, by requiring you to use direct deposit through your employer.  If you are self-employed, you will want to shop around for an account that does not require this.  In addition, because many of these accounts are offered by online banks, you will be asked to sign up for online bill pay for most your bills.  However, you will also be required to make a number a “signature transactions” per month so the bank can charge a fee to the retailer.

These are small matters to deal with, and many traditional checking accounts carry the same terms.  If you want to make money on your spending money, the high-yield checking account is certainly a great option.