Without getting too into fractional reserve banking, their reserve rates are currently at zero (set by the Fed Reserve). Meaning, when you deposit a check to your bank, they can turn around and loan out 100% of the value of your deposit. And when you come back for your money, they make it hard with limits. If they charged money to store your funds, and then invested all that cash into the stock market. Any run on the bank of more than 1% of total deposits will collapse the entire banks liquidity. In other words, if you have more than 100k in your bank account, you better be emotionally and psychologically ready to part with it if the bank becomes insolvent or the stock market crashes.
Without getting too into fractional reserve banking, their reserve rates are currently at zero (set by the Fed Reserve). Meaning, when you deposit a check to your bank, they can turn around and loan out 100% of the value of your deposit. And when you come back for your money, they make it hard with limits. If they charged money to store your funds, and then invested all that cash into the stock market. Any run on the bank of more than 1% of total deposits will collapse the entire banks liquidity. In other words, if you have more than 100k in your bank account, you better be emotionally and psychologically ready to part with it if the bank becomes insolvent or the stock market crashes.