Q: I know that banks have different interest rates, but which ones have the highest interest rates for checking accounts?

A: Some banks do offer checking accounts that accrue interest on the balance that remains in the account. Some of these places pay very respectable interest amounts.

According to Bankvibe.com, as of March, 2009, there were 10 banks that offered checking accounts where the balance earned between 4.01% and 4.09%. Average interest rates for checking accounts range from as low as 0.50% to 1.00%.

The amount of interest that can be earned on a checking account may be dependent on a number of factors. For example, you may have to make a maximum deposit of $25,000 or more to get the highest rates, or have to maintain a minimum balance in order to earn any interest at all. Further, some banks do charge service fees for high interest checking accounts. Terms vary from bank to bank, so you might want to do some comparison shopping.

High interest checking accounts can be a good way to save money. You can use the interest to make investments or arrange to have it transferred into a savings account each month. This way you will be less tempted to spend it, but if you need it for an emergency, it’s nice to know it’s there.