The average checking account at any bank charges the owner a monthly fee for maintaining this account. Avoiding this charge is possible, however, and some checking accounts even pay interest.

Many banks offer accounts with staggered rates of interest when the owner maintains a minimum balance. For example, an account with a $1000 minimum balance  might earn a certain interest rate, while an account with a $5000 balance might earn a higher interest rate. 

If you have agreed to keep a $1,000 balance, but you average $5,000, you will only be eligible for the interest rate that the $1,000 account offers. However, if your checking account requires the $5,000 balance and you fall below that amount, you will usually pay a penalty.

Some banks will offer a combination of the two accounts, so do your homework and open the account that works best for you. Along with different interest rates, the bank will offer many other benefits with the higher interest checking accounts. Often the bank will offer free checks, free online banking, debit cards with no monthly fee, credit cards with no annual fee, free money orders, and free traveller’s checks.

To earn more interest on a savings account, many of the same qualifications work for savings as they do for checking accounts. The higher the minimum balance maintained in the account, the higher the rate of interest the bank is willing to pay. Savings accounts will limit the amount of activity allowed each month. For instance, some banks will only allow three withdrawals per month. Because of the limited amount of activity and higher balance requirements, the interest rate is often a higher yield.

You can compare interest rates on checking and savings accounts at Bankrate’s Web site, www.bankrate.com.