Question

Why do banks offer interest rates on saving accounts?

Answer 1

Because they want you to store your money in the account

Step-by-step explanation:

How they can offer interest rates is by taking your money and loaning it out to other people then getting interest on the loan as people pay it back they make money and give you some of that interest!

Answer 2

Answer: It is not mandatory by law for banks to be required to hold onto any reserve requirements for savings accounts. Thus, they can use your money more freely and you get paid a higher interest rate for the deposit.

Step-by-step explanation:

I did my research on it good question too!