Question

1. The three main types of banks (Large Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology, convenience, personal experience, fees and savings rates. For this question, put aside all of the trade-offs and look only at savings rate offered on savings accounts. Rank the following from highest to lowest on the interest rates they offer to consumers on savings accounts.

A-Credit Union, Online Bank, Large Traditional Bank
B-Credit Union, Large Traditional Bank, Online Bank
C-Large Traditional Bank, Credit Union, Online Bank
D-Online Bank, Credit Union, Large Traditional Bank

Answer 1

Answer: Rank from highest to lowest

D-Online Bank, Credit Union, Large Traditional Bank

Credit unions offer higher interest rates on all deposit accounts including savings over traditional banks. Online banks offer rates that are competitive. Sometimes, it is better than the rates offered by credit unions.