interest-bearing account

Meaning

1. 1nouncountablefinance

   A bank account that pays the holder a percentage of the balance as a reward for keeping money there.

   Grammar: A normal countable noun: open an interest-bearing account; several interest-bearing accounts.

   Patterns

   • open an interest-bearing account
   • keep money in an interest-bearing account

   She moved her savings into an interest-bearing account to earn a little more each month.

   An interest-bearing account usually requires a minimum balance.

   Our class treasurer put the fundraising money in an interest-bearing account.

Word forms

Common combinations

open an interest-bearing account

He opened an interest-bearing account for his first paycheck.

deposit into an interest-bearing account

They deposit part of every salary into an interest-bearing account.

earn money in an interest-bearing account

Money in an interest-bearing account grows slowly but safely.

high-yield interest-bearing account

A high-yield interest-bearing account can beat the standard rate.

Synonyms and how they differ

savings account

A savings account is the everyday name and nearly always pays interest, while 'interest-bearing account' is a broader, more technical label.

deposit account

Deposit account is a British term for an account that earns interest but may limit withdrawals.

money market account

This is a specific kind of interest-bearing account with higher minimums and limited transactions.

Opposites

Word family

interest noun

money paid for the use of money

interest rate noun

the percentage charged or paid on money

bear verb

to produce or yield, as in 'bear interest'

account noun

an arrangement with a bank to hold money

Commonly confused: interest-bearing account or checking account?

Practice

Make it your own

Write a sentence using “interest-bearing account”, then check it and compare it with the examples above.

Explore more words