Whatever interest you are paid, the bank is taking in multiples of that amount by lending that money out.
Which is, in essence, the point of a banking system.
But since they are now run by the 👃, not so much.
Well, that is how banking works. I’m not going to lend you or anyone else money. At least they are willing to do that.
Peer lending is a thing and if interest rates hit double digits it is something I will get into.
Look into the laws in your area. Last time I looked into personal lending I found that legally speaking I was only allowed to get 1% interest whereas a bank or what have you can get 15+% and compounding.
That's why some places have "payday" loans where they front the money then charge "fees" where none of the "fees" are tied to any form of "interest". This is the most predatory form of lending.
Of course there's always the back alley "get your knees knocked out" kind of lending but that's a messy business.
(post is archived)