Question

Financial product on which bank charges the highest interest rate

Answer 1

Heya!

✴ A bank earns a spread on the funds it lends out from those it takes in as a deposit.

✴ The net interest margin (NIM), which most banks report quarterly, represents this spread, which is simply the difference between what it earns on loans versus what it pays out as interest on deposits.

✴ Of course, this gets much more complicated given the dizzying array of credit products and interest rates used to determine the rate eventually charged for loans.