Historic term deposit rates

[Sir Burr]

Hi boofhead,

The banks actually lend out each dollar to multiple people.

So in this case it would be 5% on 100k X 4 = $20k

Then from that they pay the interest to the lender (term deposit @ 6%), so $20k - $6k = $14k profit.

25,000 x 5% = $1250
25,000 x 5% = $1250
25,000 x 5% = $1250
25,000 x 5% = $1250

100000 X 5% = $5000