Current account with interest: benefits and how it works

In the wide range of options available to savers, the interest-bearing current account is an interesting option. This way you can increase your money and have access to it at any time. In this article, we explain how an interest-bearing current account works and what advantages it can offer you.

A current account with interest is a bank account where the credit balance is remunerated at a specific interest rate. This allows you to earn interest while your deposit remains available at all times. This product is advantageous because it offers liquidity and returns. It is a good choice for anyone looking for a flexible investment.

Banks that offer a current account with interest apply an annual interest rate on the account balance to the account. These interest payments are calculated and credited periodically (monthly, quarterly, semi-annually or annually), depending on the agreement with the bank.

It is important to note that interest rates on current accounts are often lower than those on savings accounts or fixed-term deposit accounts. The main advantage of a checking account is its flexibility. The balance can be withdrawn at any time without any conditions or fees. Unlike other savings products, the current account can also be used for daily payment transactions.

A current account with interest has many advantages. It is a good choice for savers who value simplicity and flexibility. Here are some of the main advantages:

• Liquidity: The most important feature of an interest-bearing current account is its liquidity. As with your savings account, you can access your deposit at any time, making it ideal for unexpected expenses or financial emergencies.
• Convenience: Since it is a full-fledged current account, you can use the account for your daily payment transactions. You can make transfers, issue direct debits and also withdraw money at ATMs and partner companies.
  

 

Before you open an interest-bearing current account, it is important to consider a few factors:

• Interest rate: Compare different offers to find the best available interest rate.
• Fees: Some current accounts include account maintenance fees or other costs. Review the terms and conditions carefully.
• Terms and conditions: Some accounts require a minimum balance, others require regular salary deposits. There are other terms and conditions in order to earn interest or avoid fees. Make sure that you are aware of these requirements.
• Accessibility: Review how easy it is to access your funds, for example, through cash withdrawals or transfers.
• An alternative to savings accounts: Consider whether an interest-bearing current account is the best choice for you. Other savings products such as savings accounts or fixed-term deposits may offer a better return.

 

BBVA's Free Forever Current Account offers you the opportunity to increase your account balance easily, securely, and automatically without tying up your capital. You benefit from 3% interest p.a. on your balance for the first 6 months, without any conditions such as minimum amounts or salary deposits.

After the 6 months, a long-term interest rate is still guaranteed, and you will be informed every 3 months about the current interest rate according to market conditions. 

The interest earned on your BBVA account balance is calculated daily. For the calculation, the annual gross interest rate of 3% must be divided proportionally over each day (3% x daily balance/365 days). The total interest earned during the month will be credited to your account at the beginning of the following month, after taxes have been deducted. The BBVA interest-bearing current account works like a traditional current account, so you can perform all your daily banking transactions such as card payments, transfers, cash withdrawals, etc.

A current account with interest is particularly suitable for those who want to have access to their money at any time and do not want to miss out on interest. Before opening an interest-bearing current account, review how the available offers fit your financial needs and savings goals.