Which type of financial institution typically offers the highest interest rates on savings?

Credit unions are often known for offering the highest interest rates on savings compared to other types of financial institutions. This is primarily due to their not-for-profit structure, which allows them to return profits to their members in the form of better rates on savings accounts and lower fees. Unlike commercial banks and savings banks, which are profit-driven and may prioritize shareholder returns, credit unions focus on serving their members' financial needs. This member-centric approach helps facilitate more competitive interest rates on savings products.

Additionally, investment banks do not typically offer savings accounts or traditional savings products, focusing instead on capital markets, mergers and acquisitions, and serving corporate clients, which makes them irrelevant in this context. Therefore, the structure and mission of credit unions make them the best option for higher interest rates on savings.