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Why do banks pay interest?

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Answer:

Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. After paying for various costs, the banks pay money on savings deposits to attract new savers and keep the ones they have.

Step-by-step explanation:

User Kenji Crosland
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Answer:

Hope the above picture might help you :)

Why do banks pay interest?-example-1
User Gady
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