Why do banks bother with paying embarrassingly low interest rates?


Wouldn’t it save face to just not pay interest instead of paying .01% or .02% interest?

In: Economics

Why would I go to a bank that gives no interest over even a tiny bit? Honestly there’s little difference to most people unless you’re the only bank in the area or something like that. For the most part a lot of the policies and benefits are similar between the major ones.

I have no reason to use a bank that offers no interest rate if there are some that offer one, even a tiny one. Offering the interest rate is what saves face.