It just seems like a semi necessary thing to have to use a bank, why do they pay me a % to keep money there?
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They want you to deposit your money with their bank because they get to put your money into a big fund and invest it. They make a lot of their money by gambling with house chips. There was a point in our history where banks were viewed the way we look at crypto exchanges, where you might lose everything because a banker decides to close shop and skip town with everyone’s money. Now we have federal deposit insurance so there is some guarantee that your money is safe but the banks still have to convince people to deposit with their bank over the other alternatives. There are other incentives besides savings interest for people who have more money to invest
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