How Does a Bank Afford to Pay Interest on Savings Accounts?

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Tip 1 - How Does a Bank Afford to Pay Interest on Savings Accounts? | eHow

Published: 9 years, 5 month(s) ago | Submitted by Jennifer Stockton | permalink

How Does a Bank Afford to Pay Interest on Savings Accounts?. When a customer opens a savings account, he or she is looking for a safe, stable place to store money while earning a modest interest income. Banks, especially those guaranteed by the Federal Deposit Insurance Corporation (FDIC), provide that safe haven for money and pay a small return...

For further reading: http://www.ehow.com/how-does_4811272_afford-pay-interest-savings-accounts.html ^[1]

Tip 2 - Money Market Accounts vs. Savings Accounts - Video | Investopedia

Published: 9 years, 5 month(s) ago | Submitted by Jose Galavis | permalink

An interest-bearing account that pays a higher interest rate than a savings account and gives the account holder limited check-writing ability.
Tags: money market accounts,mmda,money market,retail banking

For further reading: http://www.investopedia.com/video/play/money-market-accounts-vs-savings-accounts/ ^[2]

Tip 3 - 75% of instant access savings accounts pay less than 0.5% interest

Published: 9 years, 5 month(s) ago | Submitted by Daniel Silberman | permalink

Three out of four of the UK’s 50 million easy access savings accounts now earn less than the Bank of England’s historically low base rate of 0.5 per cent, a report has found.
Tags: 75,instant,access,savings,accounts,pay,0,5,interest

For further reading: http://www.dailymail.co.uk/news/article-2919207/75-instant-access-savings-accounts-pay-0-5-interest.html ^[3]

Tip 4 - Why You Should Move Your Savings to an Online Bank

Published: 9 years, 5 month(s) ago | Submitted by CB Matt | permalink

Skip the brick-and-mortar branches. Online-only banks offer better interest rates.
Tags: personal finance,money,banking,savings,interest rates,internet,Best You: Saving & Spending,customer service,consumers,smartphones,Erin Lowry

For further reading: http://money.usnews.com/money/blogs/my-money/2014/10/21/why-you-should-move-your-savings-to-an-online-bank ^[4]