This blog is for informational purposes only and not an offer of any specific account or service. For current details on our checking accounts, including terms and fees, please visit midflorida.com or speak with a representative. Account features and conditions may change. Membership eligibility required.

Financial experts tend to have one of two conflicting opinions on interest-bearing checking accounts. Either they feel like these accounts are a financial game-changer or just a ploy to get people to open an account.

However, interest-bearing checking accounts, such as the MIDFLORIDA Credit Union High Yield Checking Account, can give you a significant financial advantage. You just have to know how to use them effectively.

In this article, we’ll discuss the steps to benefit from your interest-bearing checking account the most.

Start your account application with MIDFLORIDA.

Review the terms and conditions of your interest-bearing checking account

To get the most from an interest-bearing checking account, you must first understand how they work.

This includes:

• Conditions you have to meet to earn interest on your account
•  Minimum account balance requirement
• The interest rate of your checking account

When you’re familiar with these terms and conditions, you’ll better know how much your money can earn in an interest-bearing checking account.

Even better, you’ll also know how likely you are to meet those conditions consistently.

For instance, with a MIDFLORIDA High Yield Checking Account, the eligibility requirements to avoid a monthly maintenance fee include:

• Keeping a daily balance in your account of at least $1,500
• Making at least $1,000 in Direct Deposits a month
• Making 10 debit card purchase transactions a month
• Enrolling in Online Banking

Know what fees the account charges

While an interest-bearing checking account can earn you money, it might also charge fees that are higher than the money your account earns.

If you open an interest-bearing checking account, you must know what fees you might charge. Some potential fees include:

• Minimum balance fees
• Maintenance fees
• Monthly fees
• Overdraft fees

You'll want to know the fees, when you might accrue them, and how much your credit union or bank will charge.

If your checking account has a minimum balance fee, you’ll want to know how much you need to keep in your account at all times and how much you’ll have to pay.

It’s worth pointing out that if your interest-bearing checking account charges a monthly or regular maintenance fee, you should look for one that doesn’t.

These fees are almost guaranteed to erase any profit you might earn from interest, and many credit unions or banks don’t have them.

Ask yourself why you’re opening the account

This might seem simple, but your answer determines your use of this account.

For instance, if you’re opening an account just to get some extra money, you’ll want to ensure you keep the money in your account above the minimum balance requirement.

However, if you’re trying to use your checking account like a savings account and take advantage of the interest rate, you’ll need to do more planning.

Among the steps you should take are:

• Comparing interest rates between your checking and savings accounts
• Making regular deposits to your interest-bearing checking account
• Coming up with a strategy to prevent you from unnecessarily spending the money you’re saving in your checking account

Check your balance daily

Monitoring an interest-bearing checking account is arguably more important than keeping track of the balance in a traditional checking account.

You’ll want to have enough money to pay off your expenses, keep track of the interest you earn, and ensure your account balance is above the minimum requirement.

Monitoring your checking account daily will also help you see your progress toward meeting the conditions you’ll need to meet to earn the interest the account offers. It will also make you more likely to meet those conditions every month.

Give yourself a buffer

Since one of the most common conditions of an interest-bearing checking account is that you have to maintain a minimum balance, you should give yourself a financial buffer.

This will not only ensure you meet that condition but also give you a set amount of money that you know will earn interest.

One good rule of thumb is keeping an extra month’s expenses in your checking account.

This not only ensures you’ll be able to take advantage of the interest rate, but it will also protect you from overdraft fees.

Open an interest-bearing checking account at MIDFLORIDA

An interest-bearing checking account is a great way to earn extra money, but you need to know how to use it properly.

1. Familiarize yourself with the account's terms and conditions, including potential fees, then give yourself a buffer and monitor your account daily.
2. Give yourself a buffer if your interest-bearing checking account requires a minimum balance.

If you’d like to see what an interest-bearing checking account offers, speak with a teller at MIDFLORIDA today. They’ll be able to help you open a checking account that pays interest.

Additionally, if you’re a new member and open up a MIDFLORIDA Free Checking account, you can get a $200 bonus¹ if you meet the terms and conditions.

Even better, when you open an account at MIDFLORIDA, you’ll get the services big banks have to offer but with the personal touch that’s lacking in so many of them.

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¹ Offer valid as of August 1, 2024, and may be canceled at any time. MIDFLORIDA Credit Union membership and eligibility requirements apply. See associate for details regarding fees and terms. To qualify for the $200 incentive, you must open a new Free Checking account with direct deposit ($500 cumulative which must post within 60 days of account opening; cash transfer app deposits do not qualify); accept and open online banking, eStatement, and a debit card; and complete 5 debit card purchase transactions which must post in one calendar month (to be completed within the first 60 days of account opening). No dividends are paid on Free Checking. Annual Percentage Yield is 0.00%. Limit one incentive per Social Security number. Past checking account holders and previous recipients of checking account incentives are ineligible. The incentive will be deposited to new Free Checking account after the qualifications have been met and will be reported to the IRS. Minimum to open Free Checking is $50.