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 want you to keep your money with them, so they can invest it in stuff that will hopefully make them more money, interest is basically their payment to you for letting them use your funds, instead of having to borrow them fom another bank

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