Question

Why would a bank give higher interest rates for money in a savings account than for money in a checking account?

A checking account requires more maintenance than a savings account, and it has a greater variation in the amount of money the bank can work with.

The extra interest in a savings account is used to pay for free checks.

The bank would rather not provide checking accounts, so it gives lower interest rates in hopes that customers will put all of their money into savings.

Money must be left in a savings account for a set period of time, therefore the money earns more interest.

Answer 1

because a checking account requires more maintenance than a savings account , and it has a greater variation in the amount of money the bank can work with.

Answer 2

A checking account requires more maintenance than a savings account, and it has a greater variation in the amount of money the bank can work with is the correct answer.

Step-by-step explanation:

bank give higher interest rates for money in a savings account than for money in a checking account because checking account requires more maintenance than a savings account, and it has a greater variation in the amount of money the bank can work.

A checking account is a kind of bank deposit account which is meant for daily cash transactions.

The cash in the savings account is not meant for everyday use but intended to stay and saved in an account so that you can earn interest.