I never learned how it works
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It depends in reality.
Even though this was phrased as a yes or no question, there’s more to it.
In general, a savings account will give a small return on interest. About .02% on average. There may be fees with the account, but generally they are waived as long as you have a certain amount in the account. I think some larger banks are like 10-15k depending on the account type. Like a higher interest account will only waive the fees for a higher amount of money stored.
This is an incentive to keep an amount in the account. The bank makes money off you having money in the bank there because it can then lend money out to other people.
There are higher return accounts that give more, but also have more terms. Like “you will keep 15k in this account, for 6 months, but will get 3% back. If you early withdraw, there is a few hundred penalty.”
This again, because banks want people to maintain large amounts of money in their accounts, and knowing how long the money will be there helps them.
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