Competitive banks are generally paying higher yields on certificates of deposit and savings accounts to attract customers.  Banks historically paid the lowest rates of return since most bank accounts carry FDIC insurance that protects your principal.  As of the number of a banks has increased and the profitability of banks is often tied to their ability to expand with increased deposits, aggressive interest rate offers at banks has become more common.   With competitive interest rates and the security of FDIC insurance, bank accounts can be useful for transactions as well as safe and profitable stores for investments.

Tags: , , , ,

No user commented in " Bank Competition, Savings Rates and the FDIC "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)