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Why do banks generally offer higher interest rates to personal customers than to business accounts?

Banking
Asked by Question Bot09/Feb/20121 answer

1 Answer

F

Faisal Khan

Answered 09/Feb/2012

Actually, a business customer is more economical to deal with on a floor cost basis, than a non-business customer. The reasons (IMHO) banks pay more attention to personal customers is the ability to cross-up / up-sell products, specifically loans, credit cards, and other products that would increase the bottomline of the bank via loaning money or by gaining additional deposits.