ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Low
|
|
|
High
|
|
|
Either A or B
|
|
|
None of the above
|
Detailed explanation-1: -One reason savings account rates are so low is that financial institutions profit when the rate on the money they lend out is higher than the rate they pay people who deposit money into savings. When rates on loans are low, banks like to keep savings account rates even lower to continue making money on them.
Detailed explanation-2: -The nation’s biggest banks, on the other hand, have kept interest rates low. Flush with money people deposited early in the pandemic and seeing lower demand for borrowing because of higher interest rates on loans, they have had little incentive to attract more money.
Detailed explanation-3: -Interest on savings accounts is expressed in percentage terms. For example, let’s say you have $1, 000 in the bank; the account might earn 1% interest. Unfortunately, most banks pay less than 1% interest on savings accounts due to historically low-interest rates.
Detailed explanation-4: -Citibank – APY: 3.85%, min. Marcus by Goldman Sachs – APY: 3.75%, min. Barclays Bank – APY: 3.60%, min. American Express National Bank – APY: 3.50%, min. Discover Bank – APY: 3.50%, min. Ally Bank – APY: 3.40%, min. Capital One – APY: 3.40%, min. More items
Detailed explanation-5: -State Bank of India (SBI) Savings Account. 2.70% p.a. HDFC Bank Savings Account. 3.50% p.a. Kotak Mahindra Bank Savings Account. 3.50% p.a. DCB Bank Savings Account. 6.50% p.a. RBL Bank Savings Account. 6.00% p.a. IndusInd Bank Savings Account. 5.00% p.a. ICICI Savings Bank Account. 3.50% p.a. 12-Jan-2023