Some checking accounts do earn interest, but not all. Interest-bearing checking accounts are offered by certain banks and typically require a higher balance or meet other criteria to qualify for earnings.
Understanding Interest on Checking Accounts
Many people assume checking accounts are just for spending—but in some cases, they can also grow your money. Let’s break down how and when you can earn interest from your checking account.
Does a Checking Account Pay Interest?
Not all checking accounts offer interest. Accounts that do pay interest usually fall under these categories:
- High-yield checking accounts
- Rewards checking accounts
- Interest-bearing accounts linked to other products (e.g., savings, CDs)
Interest is usually paid monthly and calculated based on your daily or average balance.
What Are the Requirements for Earning Interest?
Banks often set eligibility rules to earn interest on checking accounts. These may include:
- Maintaining a minimum daily or monthly balance
- Enrolling in direct deposit
- Making a certain number of debit card purchases per month
- Signing up for paperless statements
Do You Get Interest in a Checking Account at Midland States Bank?
Yes, Midland States Bank offers interest-bearing checking accounts designed to reward you for everyday banking. Some of our local Illinois and Missouri-based checking products provide competitive interest rates when you meet monthly qualifications. Rates and terms vary by product and location.
Check with your local branch or visit www.midlandsb.com to get connect with rates in your area.
FAQs
Q: Which banks offer interest-bearing checking accounts?
A: Most regional and national banks offer at least one interest-bearing option. Credit unions and online-only banks often provide higher rates.
Q: Is the interest on checking accounts taxable?
A: Yes, interest earned is considered income and should be reported on your tax return.
Q: Can I earn interest on a joint checking account?
A: Yes, joint accounts can earn interest just like individual accounts.
Q: What's the difference between checking and savings account interest?
A: Savings accounts typically earn more interest and have fewer transaction capabilities, while interest-checking offers flexibility with modest growth.
Q: Do checking accounts pay compound interest?
A: Some do—typically daily compounding, paid monthly. Always check the account disclosures.
Find a Checking Account That Pays You Back
Looking to grow your money while keeping it accessible? Midland States Bank offers checking accounts that reward you just for doing your everyday banking. From high-yield options to earning interest with direct deposit, we make brighter banking simple.
Explore Interest-Checking Options
