The federal bank pays 4.9% interest rate right now.[0] This was a new policy enacted in 2008 -- it didn't used to pay interest rates on deposits. That's the "w

The federal bank pays 4.9% interest rate right now.[0] This was a new policy enacted in 2008 -- it didn't used to pay interest rates on deposits. That's the "wholesale" savings interest rate. The less you are making compared to that, the more your bank is profiting. As an aside, the interest the banks earn from this is newly created money. With 17 trillion dollars currently deposited, that's $833 billion of inflationary pressure every year. [0] https://www.federalreserve.gov/monetarypolicy/reserve-balances.htm https://www.federalreserve.gov/monetarypolicy/reserve-balanc... [1] https://fred.stlouisfed.org/series/DPSACBW027SBOG https://fred.stlouisfed.org/series/DPSACBW027SBOG