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3 votes
3 votes
Which type of savings plan offers the lowest interest rate?

O A. Checking account
O B. Savings account
O c. Certificate of deposit
O D. Money market account

User Evren Kutar
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2 Answers

26 votes
26 votes

Final answer:

A checking account offers the lowest interest rate compared to a savings account, certificate of deposit (CD), or money market account because it is designed for facilitating transactions rather than saving.

Step-by-step explanation:

Among the options given, a checking account typically offers the lowest interest rate. Banks offer checking accounts primarily to facilitate transactions, such as writing checks or using a debit card, and not as a means to grow your savings. Thus, they often pay little to no interest. On the other hand, a savings account usually pays some interest, which can be accessed through a visit to the bank or electronically. Higher interest can be earned through a certificate of deposit (CD) or a money market account, both of which typically offer better returns than a standard savings account; however, CDs come with the stipulation that the money must stay in the account for a specified period, or face a penalty for early withdrawal.

User Navin Leon
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2.3k points
15 votes
15 votes

Answer:

Answer to your question is savings account.

Step-by-step explanation:

A savings account provides the lowest interest rates.

User Dotminic
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2.6k points