> Even if the money is deposited in a bank, it doesn't stay in the bank. The bank loans it out. That's how banks make money. You deposit money, they loan it out

> Even if the money is deposited in a bank, it doesn't stay in the bank. The bank loans it out. That's how banks make money. You deposit money, they loan it out to someone who pays them interest. Not really, they'd rather buy treasuries and deposit at the FED for a risk-free 4-5% return and it shows in FRED data; roughly $2.5 Trillion dollars are currently held at just Fed's overnight repo facility. In return when banks do want to lend it out, poor people (often with bad or average credit) get ludicrous interest rates like 15-25%. https://fred.stlouisfed.org/series/RRPONTSYD https://fred.stlouisfed.org/series/RRPONTSYD