non-interest-bearing account

Definition

A checking account which does not earn interest on the money in the account. A non-interest-bearing account is often used as a basic or starter checking account, frequently for children or teens who are only storing a small amount of money. Another advantage of these accounts is that in some cases, a non-interest-bearing account will have limited or no fees.

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You should always look for a better option but if you can't find one then settle for a non-interest-bearing account.

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After getting her first job, Jane Smith's mom helped her open a non-interest-bearing account at UMB to help her learn to manage her finances.

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Unbeknownst to us, my mother had placed all of her money into a non-interest-bearing account and was not earning anything on her investments.

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