Logic Behind Interest in Banks #bankingsystem #economics #finance #howbankswork #investing #money

Ever wondered why the bank is so eager to give you 6% interest on your savings? It’s not out of the kindness of their hearts!

In this video, we break down the simple math of how banks actually make their money using YOUR deposits.

Imagine you deposit $5,000 at a 6% interest rate. The bank doesn't just let it sit in a vault. They turn around and lend that exact same money to someone else at an 11% interest rate.

The result? A clean, effortless 5% pure profit for the bank.

Welcome to the world of fractional reserve banking and interest rate spreads!

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#Banking #Money #PersonalFinance #Investing #HowBanksMakeMoney #FinancialLiteracy

Видео Logic Behind Interest in Banks #bankingsystem #economics #finance #howbankswork #investing #money канала Little Capital