Free Interest Checking Accounts

Free checking accounts are great in that they can offer many features in exchange for your business. However, interest bearing checking accounts, while “free”, still come with indirect costs. These include monthly requirements in which you must take action on. See Interest Checking.

Any local bank and/or credit union probably has a wide variety of features and benefits for you to take advantage of. The most important thing is to know that the free checking account you open will not have fees associated with ACH (Automated Clearing House) transfers.This varies by bank so you should talk with a rep for exact details.

A lot of online banks have interest bearing accounts that do not have an annual fee. They don’t even have minimums – you can keep $1 in there if you want. The rates associated with these online banks are variable and will move up and down regularly depending on economic conditions. Just find one that pays a respectable yield and will allow you to create a link to your free checking account.

Search around for the best rates from an FDIC insured bank.

Keep in mind that your bank or credit union might have a savings account or CDs that will give you what you need. Make sure that there are no fees or costs, and that the interest rate is competitive. Use the tab on the top of this page to compare the highest rates for different types of accounts.

Once you have both of your accounts opened, you’ll need to “link” them. To do this simply tell them about each other. The most common way is to send a voided check from your free checking account to the interest or dividend paying institution. In most cases your banking institution will have a form as well since this is a very ordinary process.

Note that you’ll probably have to wait while the link is established. Be prepared to wait several weeks for this to get up and running. The sooner you set it up the better!