What type of account is typically held at a financial institution that provides a modest interest rate and easy access to funds?

A savings account is indeed the type of account that is commonly held at financial institutions, offering a modest interest rate while providing easy access to funds. This account is designed primarily for saving money and earning interest on the balance. The interest rates on savings accounts, while not typically high, can accumulate over time, providing a safe haven for funds without the risk associated with investing.

Accessibility is another key feature of savings accounts, allowing individuals to withdraw money as needed, making it a practical choice for emergency funds or short-term savings goals. Unlike a brokerage account, which is used for buying and selling investments, or a money market account, which may offer slightly higher interest rates but often imposes withdrawal limits, a savings account offers straightforward management of cash with minimal fees.

Additionally, a checking account serves a different purpose; it is primarily meant for daily transactions rather than earning interest. Therefore, the savings account is the best fit for the criteria of providing both a modest interest rate and easy access to funds.