Banker Question: Does online banks offer higher interest rates than brick-and-mortar institutions?


Yes, generally. Since they save money by not operating storefront branches, online banks can afford to offer much higher rates than the national average of .06 percent. That’s why you’ll almost always find leading online banks among the institutions with the highest-yielding savings accounts.

Remember, though, when choosing a bank, you also want to weigh other features, like customer service, fees and whether it’s FDIC insured.

From: Acorn