Question

Some banks will pay you interest if you maintain a high enough balance in your checking account. This is known as an interest-bearing account.

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Answer 1

A checking account typically does not earn interest, but some banks offer interest-bearing checking accounts if you maintain a high enough balance.

Step-by-step explanation:

A checking account typically pays little or no interest but facilitates transactions by giving you easy access to your money through writing checks or using a debit card. On the other hand, a savings account typically pays an interest rate, but getting the money usually requires a trip to the bank or an ATM. However, in recent years, many banks have started offering interest-bearing checking accounts that pay an interest rate similar to a savings account if you maintain a certain minimum balance in the account.