Answer: Certificate of deposit (CD)

## Explanation Certificate of deposit (CD) accounts typically offer the highest interest rates among standard deposit accounts because: - **CDs require a fixed term commitment** (e.g., 6 months, 1 year, 5 years) where funds cannot be withdrawn without penalty - **Longer lock-up periods** provide banks with more stable funding, allowing them to offer higher rates - **Lower liquidity** for depositors is compensated with higher returns **Comparison of account types:** - **Checking accounts**: Lowest rates, highest liquidity - **Savings accounts**: Moderate rates, limited withdrawals - **Money market accounts**: Higher rates than savings, check-writing privileges - **CDs**: Highest rates, fixed terms with early withdrawal penalties This reflects the fundamental trade-off between liquidity and yield in banking products.

Author: LeetQuiz .