Asked by F
Some savings accounts help depositors earn money. Where does this money come from?
from the federal government agency known as the FDIC
from the interest that borrowers pay to a bank for a loan
from the central banking system, which is called the Fed
from other depositors’ money kept in the bank’s vault
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Answer: from the interest that borrowers pay to a bank for a loan.
Banks pay deposit interest out of their earnings — mainly the interest and returns they receive from loans and other investments (plus fees and other income). The FDIC only insures deposits, the Fed doesn’t directly fund customer interest, and banks don’t pay interest out of money “kept in the vault” (most deposits are used for loans and investments, not stored as cash).
Banks pay deposit interest out of their earnings — mainly the interest and returns they receive from loans and other investments (plus fees and other income). The FDIC only insures deposits, the Fed doesn’t directly fund customer interest, and banks don’t pay interest out of money “kept in the vault” (most deposits are used for loans and investments, not stored as cash).
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