this post was submitted on 18 Jul 2023
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[–] bunkyprewster@startrek.website 36 points 1 year ago (4 children)

Having money means you automatically get to have more money - ie interest, rent, investments.

[–] berkat@lemmy.world 3 points 1 year ago (3 children)

Why is that crazy? If I loan the bank money and they make money on my loan I should get paid for it.

[–] bunkyprewster@startrek.website 1 points 1 year ago (2 children)

How does the bank make money from your money?

If I leave a pile of money in my closet, it doesn't grow like mold.

Banks use your money to invest. They only have to have a small percentage of their holdings in cash on hand so they can invest, make money, and pay you interest.

Your money isn’t just sitting in a vault at your local Bank of America branch.

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