Why would a bank give you higher interest rates for money in a savings account than for money in a checking account?

Banks give a higher interest rate for a savings account, because in a savings account, the bank expects you to keep your money there for long-term, and so they can use that money for their own purposes (such as loaning to others, creating new banks, etc) In a checking account however, your money can be instantly withdrawn whenever possible, and so the bank must have your money ready at all times, leading to them not being able to use it, and so giving a lower interest rate.

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