Banks encourage the use of savings accounts by paying

Question

Social Studies

Lexi Stein

24 April, 16:45

Banks encourage the use of savings accounts by paying

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Answers (2)

Know the Answer?

Deja Flores · Answer 1

Banks do that so that you can save and they will be receiving money and giving money to you

Hutchinson · Answer 2

Banks encourage the use of savings accounts by paying interest on that money to us. By doing this banks may use our money in share market, bond market, bullion, commodity, currency exchange with other countries to earn money from our savings bank account money. Banks use our savings account money to lend to borrowers, who pay interest on that loan. The interest paid on savings account is always less than the interest charged from the borrowers so that the banks may earn money. The extra money earned through this method is the income of the banks through which they pay to their staff, this extra money is profit to the banks.