Why do banks offer higher interest rates to individuals than to businesses?

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.