Question

In 2017, which of these represents a competitive but realistic interest rate

on a savings account?
1%
2%
3%
7%

Answer 1

Answer: 1%

Explanation:

Savings accounts offer interest payments on them however they are quite easy to access which means that banks are limited in being able to use funds in savings accounts for long term loans which bring in revenue.

This therefore translates to lower interest rates being paid on the accounts and in 2017 up until now, a competitive and realistic interest rate often found in savings accounts is approximately 1%.