ale6315 ale6315
  • 13-12-2018
  • Business
contestada

why can a bank afford to pay interest rate on a savings account

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olovve6966
olovve6966 olovve6966
  • 13-12-2018
How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.
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alamortdoll alamortdoll
  • 09-10-2020

Answer:

Banks use the money from borrowers whom they charge at a high interest rate, and gives a lower rate to the people who have a savings account.  

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