Compared to banks and savings institutions,credit unions are able to pay a higher rate on the deposits of members because

Question

Quizplus · Accepted Answer

Credit unions are non-profit organizations that are tax-exempt, which means they do not have to pay income taxes. This allows them to pass on the savings to their members in the form of higher interest rates on deposits. Banks and savings institutions, on the other hand, are for-profit organizations that have to pay taxes, which can limit their ability to offer competitive deposit rates.

Compared to Banks and Savings Institutions,credit Unions Are Able to Pay