They lend your money out to other people paying a higher interest. In fact, they... | Hacker News

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carlosjobim on Feb 23, 2024 | parent | context | favorite | on: High Interest Savings Leaderboard

They lend your money out to other people paying a higher interest. In fact, they lend your money out several times.

Even if your bank pays 0% interest, they are lending your money out many times over to people who pay the bank interest.

carlosjobim on Feb 23, 2024 [–]

Reply to the poster below me, who was censored for some reason: AFAIK the money that people have in their bank accounts are used as reserves for all loans the banks give. I don't know of any separation of funds.

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