<prompt> Human: So I am trying to understand why some banks like Discover Bank 1.5 can offer what appears to be 75 to 150 times the interest return on Savings accounts over banks like Chase 0.01 and BofA 0.02. Unless Im being fooled by their marketing by it seems like 1.5 0.02 75 Why does Discover offer such high rate but others dont?So 2 part question: 1 Why would they do it if competition is so much lower? 2 How are they able to do it?  <response>: Its because of their loan portfolios compared to a traditional bank. A traditional bank will have most of their loan portfolio in business loans 4 or mortgages at the same rate. Discover has a very large credit card portfolio with rates 20 and ally has a large auto loan portfolio with rates 5. The interest they earn is much greater so they can pay more than a traditional bank. The credit card and auto loans make these banks riskier from a capital perspective. But the FED and FDIC keeps watch 