What type of account earns interest over time but has limited transfers allowed?

Savings accounts are designed to earn interest over time while allowing for limited transfers. They provide a safe place for individuals to store their money and typically offer higher interest rates than checking accounts. The interest earned is usually compounded, which means it can grow over time. However, banks often limit the number of withdrawals or transfers that can be made from a savings account in a given period, such as six transactions monthly, in accordance with federal regulations. This makes them suitable for individuals looking to save money while still having access to their funds, albeit with some restrictions on how often they can move the money.

The other options do not fit this description as precisely. Checking accounts are intended for frequent transactions and typically do not earn significant interest. Mutual funds are investment accounts that involve buying shares and are subject to market fluctuations, rather than simply earning interest over time. Certificates of Deposit (CDs) do earn interest and have a defined term, but they restrict access to funds entirely until maturity, unlike savings accounts that allow for some withdrawals.