And the bank does get the interest, for the duration for which the money is not in their hands. A "pre-payment penalty" sounds to me like the bank asking you fo

And the bank does get the interest, for the duration for which the money is not in their hands. A "pre-payment penalty" sounds to me like the bank asking you for money while they themselves can then also turn around and loan that (now repaid, with penalty!) money out to another person desiring a loan, and get even more profit. > The interest they get from the debtors is more then the interest they pay depositors. The interest paid to most accounts these days is a pittance, adding less back than is lost to inflation, and many accounts have additional fees.