One could expect to earn a higher rate of interest on a certificate of deposit than on a checking account.

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Certificates of deposit typically offer higher interest rates than checking accounts because the funds are locked in for a specific period of time. This allows the bank to invest the funds for a longer period, which in turn enables the bank to offer a higher interest rate to the depositor. Checking accounts, on the other hand, usually offer lower interest rates because the funds are available to the account holder to withdraw or use at any time.

One Could Expect to Earn a Higher Rate of Interest