Submitted by megaultraman t3_126ac40 in wallstreetbets
megaultraman OP t1_je8qnnn wrote
Reply to comment by robbinhood69 in Subprime is back on the menu boys! by megaultraman
You attract deposits by offering higher interest rates on savings/deposit accounts. Since banks are able to borrow from the Fed at 5%, if they lend that same money out at 10%+, they can offer rates that are competitive with money markets.
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