Eli5 why do banks give interest on money that I am keeping there?

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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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Anonymous 0 Comments

They make money by lending your money to others. That’s your cut of the interest they collect from those loans. It’s the incentive for people to give them money which they can then loan out at a profit.

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