Question

An account that is a lot like a basic bank account, but offers higher interest rates because it doesn’t have the overhead that standard banks have is _____.

A. an IDA
B. a money market account
C. an online savings account
D. savings account at a credit union

Answer 1

Answer: C. an online savings account

Explanation:

An online savings account is known to be a savings account which permit an account holder to manage money through the internet. This account can only be accessed through online and money can be transferred to another account electronically in order to make withdrawal easier. Furthermore, it makes banking convenient for an individual. Thus, it offers higher interest rate than other savings account and the fees charged by the bank on the account is usually low.

Interest rate is the sum of money which a borrower pays to a lender for borrowing money from him.

Answer 2

What is being described above would be an ONLINE SAVINGS ACCOUNT. This kind of account is similar to a basic bank account but it gives a higher interest rate since it is only operated online and does not possess that overhead that standard banks have. The answer is option C.