Payment apps don't pay interest but are beneficial for those who don't have a bank account

Payment Apps don't pay interest but benefit those who don't have a bank account.Photo byAustin DistelonUnsplash

The Roanoke Times recently ran an article in which Connor Tomasko, a freelance software consultant in Chicago, warned consumers that they did not earn interest when keeping money in a payment app.

Tomasko said she transfers funds immediately to a high-yield bank account to draw interest. This is good advice for those in a position to do so. Unfortunately, many Americans, including Virginians, don't have enough money in their bank accounts to earn interest.

Others don't own bank accounts for various reasons. For such individuals, a payment app might be the only option for depositing money outside of using cash. PC Mag lists the top three apps: GPay, Cash App, and Paypal. Zelle was listed for bank-to-bank transactions.