QuestionAugust 23, 2025

What is a key difference between online banks and traditional banks? Online banks are not FDIC-insured Traditional banks do not offer digital banking services Online banks usually offer higher interest rates on savings accounts Traditional banks do not provide lending and credit services

What is a key difference between online banks and traditional banks? Online banks are not FDIC-insured Traditional banks do not offer digital banking services Online banks usually offer higher interest rates on savings accounts Traditional banks do not provide lending and credit services
What is a key difference between online banks and traditional banks?
Online banks are not FDIC-insured
Traditional banks do not offer digital banking services
Online banks usually offer higher interest rates on savings accounts
Traditional banks do not provide lending and credit services

Solution
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Answer

Online banks usually offer higher interest rates on savings accounts Explanation 1. Identify the key difference Online banks typically have lower overhead costs and can offer higher interest rates on savings accounts compared to traditional banks.

Explanation

1. Identify the key difference<br /> Online banks typically have lower overhead costs and can offer higher interest rates on savings accounts compared to traditional banks.
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