>Instead it usually takes a chunk of that money and promises it as a loan to someone else, who will hopefully in the end pay them more in interest than they're

>Instead it usually takes a chunk of that money and promises it as a loan to someone else, who will hopefully in the end pay them more in interest than they're paying you, enough more that the difference is better than just shoving the money in the central bank. I see that you correct this slightly later on, but in reality your deposit likely pads the bank's reserves so that it can lessen its draw at the Fed's overnight (zero interest loan) window. Banks first create loans, then seek deposits to cover them.