eli5: do banks pay you for saving your money with them or do you pay them to save your money?

Question

I never learned how it works

In: 3

Answer 1

You deposit $10 in your bank account. The bank takes your $10 and loans it out to someone else who pays back the loan with interest, meaning the bank turned your $10 into an $11 repayment.

The bank takes 90 cents out of that $1 they made and they kick you back 10 cents, meaning you now have $10.10 in your bank account.

They’re using your money to make money so they kick you back some of their profits.