Fundamentally, a bank is a business that holds onto your money for you and uses it to create profits by investing that money or loaning it out to other customers. When you make a deposit or buy a savings product, you’re essentially loaning money to the bank. It pays you back in interest for that loan, but rates can vary widely depending on the bank and the way you’re putting money in. Banks then lend that money to other customers and invest it, which is how they make their money.
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