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

Question

It just seems like a semi necessary thing to have to use a bank, why do they pay me a % to keep money there?

In: 1333

Answer 1

When you give a back money they can use it to make more money through loans and other confusing methods. The more money that people give the bank the more money the bank can make from it. So they want to encourage people to deposit and keep money in their accounts