Want this question answered?
Banking is a business in purist term from a banks perspective. They wouldn't take up an activity if it is not profitable for them. Let us say you own a bank and cannot afford to pay interest on savings accounts. Would you continue to incur losses and pay interest? I don't think so. So, to answer the question, yes, paying interest on savings accounts is profitable to most banks. That is why they pay us interest.
There are several banks that offer online savings accounts with high interest payouts. The best banks to use for this are Suntrust and America's First Bank.
Savings accounts with traditional banks typically do not have high interest rates. Banks such as Ally or ING Direct offer slightly higher interest rates that are approximately .75 to 1 percent.
The bank charged interest when it loaned that money to someone else. So in return, the banks pay their customers interest on the money they borrowed from their savings accounts.
The bank charged interest when it loaned that money to someone else. So in return, the banks pay their customers interest on the money they borrowed from their savings accounts.
High interest savings accounts are savings accounts that banks give you that let you earn lots of interest with benefits. They usually are the toughest to get because you need to deposit a certain amount of money.
The bank charged interest when it loaned that money to someone else. So in return, the banks pay their customers interest on the money they borrowed from their savings accounts.
There are many options for savings accounts which provide different interest rates. For traditional savings accounts, online banks typically yield the best rates.
AIG online savings accounts seem to offer the best interest rates. As for brick-and-mortar banks, rates don't differ much, maxing out at around 2%.
Yes, online savings accounts do work the same as brick and mortar banks. In fact you may find that some online banks pay higher interest rates and are more convient.
pay interest on savings accounts
Magic elves