ELI5 How do banks work? Submitted by RussianPremier t3_11dykeb on February 28, 2023 at 6:03 AM in explainlikeimfive 8 comments 0
Aefyns t1_jabjtz0 wrote on February 28, 2023 at 6:15 AM You deposit money. They loan your money out. The interest is their profit. The government insures banks via FDIC. Lots of regulations on how to do all this but essentially this is the gist. TL;DR Banks loan out your money to other people. Other people pay the bank to use your money. Permalink 9
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