"Even low and zero interest savings accounts are used by banks to back loans." No. The loans are made out of nothing. Saving is the end of the loan process, no

"Even low and zero interest savings accounts are used by banks to back loans." No. The loans are made out of nothing. Saving is the end of the loan process, not the beginning. That has been made clear by the Bank of England. http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf http://www.bankofengland.co.uk/publications/Documents/quarte...