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by Fjolsvith 2422 days ago
Do explain where they get the interest they pay the depositor of the cash.
1 comments

Interest rate has nothing to do with profitability - it's just a price that balances the supply and demand of funds and on the short end, it's heavily influenced by monetary policy and on the long end, it's heavily influenced by the inflation and growth expectations. Lots of consumers borrow at very high rates and it's not because they expect to be profitable with the money they borrow.