What type of account typically offers a higher interest rate than a standard savings account?

A Money Market account typically offers a higher interest rate than a standard savings account due to its tiered interest rates and the fact that it often requires a higher minimum balance. Money Market accounts are designed to provide features of both savings and checking accounts, allowing for limited check-writing and debit card access while still maintaining interest rates that are generally more favorable than those offered by traditional savings accounts. This combination makes them an attractive option for individuals looking to earn a better return on their savings while still retaining some liquidity.

In contrast, checking accounts generally offer very low or no interest, as they are primarily designed for frequent transactions and not for saving. Certificates of Deposit, while they can offer higher interest rates, require you to lock your money in for a specific period, which may not be ideal for everyone. Investment accounts, on the other hand, involve taking on risks in the stock market and can potentially offer higher returns, but they are not traditional savings accounts and come with volatility and varying returns.