Which account is typically considered less liquid than a checking account?

A certificate of deposit (CD) is typically considered less liquid than a checking account because it is a fixed-term investment where funds are locked in for a specified period, which can range from a few months to several years. During this time, accessing the funds usually incurs penalties, making it less flexible than a checking account that allows for unlimited transactions and immediate access to funds.

In contrast, both money market deposit accounts and savings accounts generally offer greater liquidity. While they may have some withdrawal limits, they still allow for easier access to funds compared to a CD. Hence, the characteristic of a CD that limits access to funds for a period makes it the correct choice when identifying an account that is less liquid than a checking account.