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Maslowich
3 years ago
8

Why can a bank afford to pay an interest rate on a savings account

English
1 answer:
Neporo4naja [7]3 years ago
7 0

Answer:

the bank lends the money out at a high interest rate. They take money form your account and lend it out, at higher interest. They then take most of the interest, but give you some, such as when your account compounds, as thanks for allowing them to lend out your money. That's why, the more money in your account, the more money you get back when interest is paid.

Explanation:

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