Question

10 which of the following institutions are non-profit organizations and usually offer a slightly higher interest rate?

savings and loan associations
credit unions
online banks
banks

Explanation:

Identify key characteristics in the question

The question asks for a financial institution that meets two specific criteria:

1. It is a non-profit organization.
2. It usually offers a slightly higher interest rate (on savings/deposits).

Compare the options

Using the Financial Institutions Comparison knowledge point:

• Banks and Online banks are for-profit corporations owned by stockholders.
• Savings and loan associations can be mutually owned or stock-held, but are generally structured to make a profit.
• Credit Unions are member-owned, cooperative, non-profit financial institutions. Because they operate as non-profits, they return surplus earnings to their members in the form of lower loan rates and higher interest rates on savings accounts.

Select the correct option

Based on the non-profit status and higher interest rates on deposits, Credit Unions are the correct choice.

Answer:

• Savings and loan associations
• Credit Unions (Correct answer)
• Online banks
• Banks