ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Earns interest on the highest daily minimum balance
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Earns interest based on the avg. daily maximum balance
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Earns interest on the avg. daily minimum balance
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Earns interest on the avg. daily maximum
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Detailed explanation-1: -The catch is that you’ll sometimes need to pay a higher monthly fee and maintain a minimum account balance to earn that interest in comparison to what you’d pay for a standard checking account. 2 However, some interest checking accounts, usually online-only accounts, impose none of these requirements.
Detailed explanation-2: -Interest checking accounts, otherwise known as interest-bearing checking accounts, are checking accounts that pay an interest rate on the money held on deposit. There are key similarities and key differences between interest-bearing checking accounts and savings accounts.
Detailed explanation-3: -Interest-bearing accounts pay interest when the minimum balance is maintained. Banks rarely charge fees to their customers to cover operating costs.
Detailed explanation-4: -Flexibility Often, in order to earn interest, you must put money in an account that may limit your ability to make withdrawals. However, with an interest-earning checking account, you always have access to withdraw, deposit and spend your money as you like. The money you don’t use earns interest in the meantime.