◆Altys · Money, Explained

Why your bank loves
your savings account.

Follow your money after you deposit it.

You
You park ₹1 lakh in savings
Bank pays you:
about 3% a year
The bank
₹
Takes deposits in.
Lends money out.
A borrower
Someone's home loan, car loan, business loan
Bank charges them:
about 9% a year

the 6% gap

That gap, times crores of accounts, is the bank's engine.

Minus salaries, branches, and loans that go bad.

Your idle money is never idle.
It is the bank's raw material.

The takeaway

Banks run
on the gap.

Cheap money in, costlier loans out.
Now bank results will make sense.

Approximate rates for illustration. Educational only, not investment advice.

altys.ai · tryaltys.ai/blog