Most PNC checking accounts do not pay interest, but a few do—and the rate is usually very low

PNC offers several checking account types. The vast majority pay no interest at all on your balance. A small number of accounts—primarily the PNC Performance Checking and certain premium tiers—do earn interest, but the annual percentage yield (APY) is typically well below 0.10%. PNC publishes current rates on their website and in account disclosures, and those rates change without notice based on Federal Reserve decisions and market conditions.

If you keep money in a PNC checking account expecting to earn meaningful interest, you will be disappointed. Banks pay interest on checking accounts only when they choose to, and most do not because checking accounts are meant for spending and bill payment, not savings. If you want to earn interest on cash you are not spending, a PNC savings account or money market account will pay more—though you should compare those rates to other banks before opening one.

Key Takeaways

  • Most PNC checking accounts, including the basic account, pay zero interest on your balance.
  • PNC Performance Checking and some premium accounts do pay interest, but the rate is typically less than 0.10% APY.
  • Interest rates on checking accounts change whenever PNC decides to change them, and you should check your account disclosure or PNC's website for the current rate on your specific account type.
  • If you want to earn interest on money you are not spending, a savings account or money market account at PNC or another bank will pay more than a checking account.

Which PNC checking accounts pay interest

PNC Performance Checking is the account most likely to pay interest. However, the rate depends on your account balance and the current market environment. PNC may also offer interest on certain premium or tiered checking products, but these are not available to all customers and often require a minimum balance or direct deposit.

The easiest way to know whether your specific account pays interest is to log into your PNC account online or call PNC customer service at 1-800-762-4000. Your account disclosure—the document PNC sent you when you opened the account—will also state whether interest is paid and at what rate. If you do not have that document, you can request it from PNC or download it from your online banking portal.

How much interest you will actually earn

Even if your PNC checking account does pay interest, the amount is small. An account earning 0.05% APY on a $5,000 balance would earn about $2.50 per year. An account earning 0.10% APY on the same balance would earn about $5 per year. These figures assume the rate stays constant all year, which it will not—PNC changes rates regularly.

Interest is calculated daily and paid monthly. That means PNC looks at your balance each day, adds up those daily balances, and divides by the number of days in the month to get an average balance. Interest is then calculated on that average and deposited into your account once a month, usually on the last day of the month or the first day of the next month.

Why PNC checking accounts pay so little interest

Banks pay interest on checking accounts because they use your money to make loans and investments. The interest they pay you is less than the interest they earn on those loans and investments—that difference is how they make profit. When interest rates in the broader economy are low (which they have been for much of the past decade), banks have less incentive to pay interest on checking accounts because they are not earning much on your money either.

Checking accounts also come with features that cost banks money: the ability to write checks, make unlimited transfers, use ATMs, and access customer service. Savings accounts and money market accounts have fewer of these features, so banks can afford to pay more interest on them. If you want to earn interest, you are better off moving money you do not need to spend into a savings product.

How to find out your current interest rate

Log into your PNC online banking account and look for account details or account summary. The interest rate and APY should be listed there. If you do not see it, call PNC at 1-800-762-4000 and ask a representative for the current APY on your specific account type. You can also visit a PNC branch in person and ask.

PNC is required by law to send you an updated disclosure whenever the interest rate changes. If you receive a notice in the mail or email saying your rate has changed, read it carefully—it will tell you the new rate and when it takes effect. You do not need to do anything in response; the new rate applies automatically.

Better options if you want to earn interest

If you have money sitting in a PNC checking account that you are not spending, consider moving it to a PNC savings account or money market account. These accounts typically pay higher interest than checking accounts. You can also compare rates at other banks—online banks and credit unions often pay higher interest on savings products than PNC does.

Keep in mind that moving money to a savings account means you cannot access it as easily as you can from a checking account. Federal law limits you to six withdrawals per month from a savings account (though this rule is enforced loosely). If you need to access your money frequently, keep it in checking. If you are saving for a specific goal and do not need to touch the money for a while, a savings account will earn you more.

What happens if PNC lowers or removes interest from your account

PNC can lower or remove interest from your checking account at any time. They must notify you before the change takes effect, usually by mail or through your online banking portal. The notification will tell you the new rate and the date it becomes effective. You do not have to accept the change—you can close the account and move your money elsewhere—but you cannot negotiate a higher rate.

If you are unhappy with the interest rate on your PNC account, compare rates at other banks before deciding to move. Some online banks and credit unions pay significantly higher interest on checking accounts than PNC does, though they may have different features or require a minimum balance. Use a rate comparison tool or visit banks' websites directly to see current rates.

Frequently Asked Questions

Does PNC charge a fee if my account does not earn interest?

No. Whether or not your account pays interest, PNC may charge a monthly maintenance fee depending on the account type. Some accounts waive the fee if you maintain a minimum balance or set up direct deposit. Check your account disclosure or call PNC to find out what fees apply to your specific account.

Can I switch to a PNC account that pays interest?

Yes, you can open a new PNC checking account that pays interest if one is available to you. However, not all account types are available to all customers, and some require a minimum opening deposit or ongoing balance. Contact PNC to ask which interest-bearing checking accounts you are may be able to access for.

Is the interest I earn on my PNC checking account taxable?

Yes. Any interest you earn is considered income and must be reported on your federal tax return. PNC will send you a Form 1099-INT at the end of the year if you earned $10 or more in interest. Even if you earn less than $10, you still owe tax on it.

What if I move my money to another bank—will I lose the interest I already earned?

No. Interest that has already been deposited into your account is yours to keep. If you close your PNC account before the end of the month, you will not earn interest for that partial month, but you keep any interest that was already paid.

How often does PNC change interest rates on checking accounts?

PNC can change rates whenever they choose, and they typically do so in response to changes in the Federal Reserve's benchmark interest rate. There is no set schedule. You will receive notice before any change takes effect, so check your mail and email regularly for updates.