> Why is that? why is it cheaper for banks to borrow from me than from other banks? I say it's due to the lack of competition. The are many, many banks who wil

> Why is that? why is it cheaper for banks to borrow from me than from other banks? I say it's due to the lack of competition. The are many, many banks who will pay you something resembling the fed funds rate on a savings account (0.5% seems to be the number at the moment). Bank of America and other banks get away with paying 0.01% due to inertia and lack of consumer education.