Why credit card iterests are higher than iterest on savings account ?
Answers:
Because credit card interest is interest on a loan. They have loaned you the money to make a purchase(s).
Interest on loans is almost always higher than interest on savings.
Because banks are in the business of making money, not giving it away.
Do you know how to spell PROFIT ?
Hi there. Great question-as someone else said, it is because of profit.
When Chase (or any other bank or lending institution) has your credit card account, just letting you borrow money without any penalty takes away from their bottom line-in other words, you have their money that they are unable to make any kind of profit on. SO, to get that profit, they charge interest. This is to partially replace part of their money that you have so they can put that money to work somewhere else. Think of all the people who do run up a credit card bill and never pay it back; not only can the company not make any money on that, many times they have to settle for less than what was originally taken from them, if anything at all.
The low interest rate on the savings account is simple; any account that a bank considers "liquid" will rarely have a decent interest rate because Chase cannot guarantee they will have your money for a certain period of time, like you generally can with CDs (certificates of deposits,) IRAs (Individual Retirement Accounts,) etc. A liquid account is one that you can deposit and withdraw from freely with virtually no penalty. They're not going to pay 10% interest on a savings account with $100 because after one month, you will have $110 and they have just given away $10 for nothing, because your money isn't with them anymore...does this make any sense? It goes much deeper, no doubt.
Also keep in mind when you say Chase has a 15.99% interest rate and thinking this is a lot; most store credit cards can have up to 24% interest rates. That is a lot! Good luck on your quest for financial answers.
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