More Interest-Bearing Checking

More and more financial institutions are offering a checking account that earns money. Fidelity recently announced an FDIC insured account with checks, and it happens to earn about 3.5% APY. Nowadays, it's getting hard to keep money in a checking account that doesn't pay anything.

Should you jump on one of these accounts? For many people, a checking account that pays interest may not be worth it. Consider how much cash you leave in checking and how much you'll earn over a year on that balance. If you use a savings account and zap the money over to checking when you need it, you might be able to earn more. Just do the math before you make a decision -- switching banks can cause headaches. [Via Consumerism Commentary]

Further reading:

• ING Direct Electric Orange Checking
• Wall Street Journal Story on Fidelity Checking