system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: How would a bank make money if I deposited 1 billion dollars into my savings, considering the interest would be millions?
gpt
They take like 80% (or whatever % the Fed caps them at) of your $1,000,000,000 and loan it out to a bunch of people at an interest rate much higher than what they are giving you. They then sell those loans in big bundles to other banks and use that money to make more loans and so on and so on...