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landa | 3 years ago

Money doesn't automatically grow – you need to take risk to get a return. Your checking account takes no risk, so your bank shouldn't really pay much for you to keep your money in your account.

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quietthrow|3 years ago

Not sure I fully agree. The bank does not just hold my money. It’s going to turn around and lend some of thst money and make a decent return and especially in a high interest environment. They wouldn’t be able to do that if I didn’t keep my deposit with them. My risk is non existent because of the govt and not because of the banks clean character of protecting my money.

landa|3 years ago

Yes, so they take risk, and they should get a return. You will get your money no matter what, so your return is close to nothing. There's no greed or deception here – it's just market forces. If you want a higher return, buy a bond like the bank.