The return we earn on our money can be based on different criteria:
- The interest rate may be payable on different tranches of the account balance. It may be fixed, variable or index-linked and may be staggered or valid over a limited period of time only.
- The bank may also insist that the customer continues to hold a minimum balance in their account in order to receive the return.
- There may even a limit below or beyond which no interest is payable.
Interest-bearing accounts offer customers the freedom to withdraw their money whenever they wish without incurring any charges or penalties. There are all sorts of interest-bearing accounts and each bank offers different terms and conditions. In some cases, these types of accounts, which are mainly intended for savings purposes, do not allow for direct debit of bills or loan applications, and often no cards are issued.