Which account typically has the lowest interest rate?

The account that typically has the lowest interest rate is a checking account. This is primarily due to the nature of how checking accounts are used and their purpose within the banking system. Checking accounts are designed for everyday transactions, allowing account holders easy access to their funds for things like bill payments, purchases, and withdrawals. Because of this high liquidity and transactional ease, banks generally do not offer competitive interest rates on these accounts.

In contrast, other types of accounts such as certificates of deposit and money market deposit accounts tend to offer higher interest rates as they require the funds to be held for a longer duration and limit immediate access. Savings accounts typically offer a lower interest rate than the aforementioned options but are still generally higher than those offered on checking accounts because they are intended for saving rather than frequent transactions. Therefore, checking accounts are suited for liquidity rather than maximizing interest earnings.