Different Bank, Different Interest Rates, Why?
Products offered by the banks differ in needs and benefits for example, some banks offer more than others for similar products (e.g. a savings account with a loan product). It’s not uncommon when it comes to interest rates, to find a difference in percentage p.a. or more between banks, which may or may not add up to the lending cost.
Why are some bank interest rates higher than others?
Interest rates are some of the major sources of income for banks. A high interest rate attracts deposits, which the banks can then lend out earning revenue. Other sources of revenue come from fees for ancillary services offered e.g. fees and charges on credit cards and unsecured loans
Depending on the economy — possibly the local economy for small banks and credit unions — you’ll find that the “borrowing and lending” banks change rates as their customers’ needs change.