why are some banks able to give different rates on things, ie. a higher yield percentage on savings accounts, as opposed to others?
Like any business, it's competition. There are certainly costs involved with running 1000's of branches that online banks don't have to deal with, so they do have some efficiencies they can pass along. But there are also concerns about online-only banks many consumers have, and higher rates are a…
The Short Answer
Like any business, it's competition. There are certainly costs involved with running 1000's of branches that online banks don't have to deal with, so they do have some efficiencies they can pass along. But there are also concerns about online-only banks many consumers have, and higher rates are a way to entice more people to consider using them. Even if the expenses were equal, the online banks might be willing to forego profits today to grow their customer base, effectively using the higher rates as a marketing expense for customer acquisition.
Analysis
Key Concepts: Banks, online, higher
This explanation focuses on banks, online, higher and spans 91 words across 4 sentences. At 26% above the average Society explanation (72 words), this is one of the more thorough answers in this category, reflecting the complexity of the underlying question.
What This Answer Covers
The explanation opens with: “Like any business, it's competition.” It then elaborates by presenting a contrasting perspective, ultimately building toward a complete picture across 4 connected points.
How This Compares in Society
Ranked #152 of 500 Society questions by answer depth (top 31%). This falls in the detailed tier — above average depth. The explanation goes beyond surface-level but keeps things accessible.
Frequently Asked Questions
Is there a simple explanation for why some banks able to give different rates on things, ie. a higher yield percentage on savings accounts, as opposed to others?
Like any business, it's competition. There are certainly costs involved with running 1000's of branches that online banks don't have to deal with, so they do have some efficiencies they can pass along. But there are also concerns about online-only…
How detailed is this explanation compared to similar Society questions?
This is an above-average answer at 91 words, ranked #152 of 500 Society questions by depth. The key concepts covered are banks, online, higher.
What approach does this answer take to explain some banks able to give different rates on things, ie. a hig?
The explanation uses contrasting perspectives across 91 words. It is categorized under Society and addresses the question through 1 analytical lens.