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FunnyHighway9575 t1_jabk3vr wrote

They loan your money to other people and charge interest to get the loan. So if you keep your money in a savings account, the bank gives you 0.01% interest but can turn around and give your money to many other people and charge let's say 5% interest or more to the ones receiving it.

They also charge fees like maintenance fees, annual fees, membership fees, etc

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zmz2 t1_jabmgo2 wrote

My checking account gives me 4% so your numbers are out of date. I pay no maintenance fees, annual fees, or membership fees. Maybe you just have a shitty bank

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segelnhoch3 t1_jabxb78 wrote

These rates change over the years, but interest rates change with them. So if your bank gives 4% interest on savings, their loans probably have an interest >6-7%. Still, the 0,01% are a rather extreme example.

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MrQ01 t1_jac1txy wrote

What bank is this, if you don't mind me asking?

4% does seem very high for a checkin account

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