True or False: Basic checking accounts always pay interest on the balance deposited in the account.

True or False: Basic checking accounts always pay interest on the balance deposited in the account.

• A. True
• B. False
• C. Only in certain cases
• D. Depends on the bank's promotion

Answer: (B)

The statement is false because basic checking accounts typically do not pay interest on the balances held within them. Most standard checking accounts are designed for everyday transactions, such as deposits, withdrawals, and bill payments, rather than for earning interest. Some financial institutions may offer interest-bearing checking accounts, but this feature is not a characteristic of basic checking accounts as a general rule. It's also important to note that even if a checking account does earn interest, the rates are often much lower than those offered by savings accounts or certificates of deposit. Therefore, while some types of accounts may provide interest under specific conditions or promotions, basic checking accounts generally do not include this benefit as a standard feature.

The statement is false because basic checking accounts typically do not pay interest on the balances held within them. Most standard checking accounts are designed for everyday transactions, such as deposits, withdrawals, and bill payments, rather than for earning interest. Some financial institutions may offer interest-bearing checking accounts, but this feature is not a characteristic of basic checking accounts as a general rule.

It's also important to note that even if a checking account does earn interest, the rates are often much lower than those offered by savings accounts or certificates of deposit. Therefore, while some types of accounts may provide interest under specific conditions or promotions, basic checking accounts generally do not include this benefit as a standard feature.