Question

9. Which of these is a reason someone might choose to open an online savings account rather than a savings account at a traditional bank?
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1 point
Online savings accounts are FDIC insured to a higher limit
Online savings accounts typically pay higher interest rates on deposits
Online savings accounts are less likely to make you the victim of identity theft
Online savings accounts are created specifically for people under age 25

Answer 1

Online savings accounts typically pay higher interest rates on deposits. This is because online banks have lower overhead and can pass savings on to customers as higher APYs.