Saturday, July 11, 2009

Should incenitives be provided to banks who offer higher annual percentageyield rates in there savin

There is a saying that goes %26quot;the business of business is business%26quot;. High yielding account are offered by banks so as to cross sell other brank products like car loans, mortgages, credit cards...it%26#039;s what is called a loss leader. Take the loss on this product in hopes the customer will buy our other products. It works...ETrade derives 80% of there gross net profits from non-stock business. So, no, free market principles will insure that rates will remain compatitive. BESIDES, RATES ARE SET BY THE FED!

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