Q:

Do internet banks offer higher interest rates on savings accounts?

A:

Quick Answer

In general, internet banks offer higher interest rates on savings accounts than brick and mortar banks due to their lower operating expenses, as stated by Forbes. Consumers should also consider credit unions and prepaid debit cards when seeking the highest interest rates for their money.

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Full Answer

Credit unions that offer high interest rates require depositors to meet specific criteria to become members. These accounts often cap the amount of money the credit union will pay the high interest rate on.

Prepaid debit cards restrict the user's balance and may require direct deposits.

Savers can use Bankrate, a personal finance website, to find the highest interest rates and any corresponding requirements.

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