Since banks make their money from loan interest, they can
not offer high interest rates on a savings account when they are currently offering low interest rates on loans.
Although local banks
offer higher interest rates when compared to foreign banks, they now have more customers in the sector due to the support they've offered to their clients.
Some banks may
offer high interest rates on savings account on the condition that the investor will have a substantial minimum balance in the account.
Although these
loans offer higher interest rates for borrowers with short credit histories or a low credit score, the fact that they report to the three major credit reporting agencies means that on - time payments can build your credit score over time.
ING Direct is not the leader anymore Despite what its commercials claim («ING Direct
offers the highest interest rates of any of the major banks...»), ING Direct is now a laggard in the field.
And of course, the same lack of overhead costs that allows these banks to
offer higher interest rates permits them to impose fewer fees on their customers, saving them money over the years.
They have started to do things like promo rates for a few months,
only offering the high interest rate on the first few $ K deposited, limiting the amount that can be withdrawn, etc..
«For instance, banks who have historically offered a fixed - rate product for an [lengthy] amount of time may now
offer a higher interest rate product for a shorter duration of time.