Why do traditional banks separate checking and savings accounts?
Replied byBrian Armstrong
Co-founder & CEO at Coinbase
Niche: Cryptocurrency
Revenue: Approx. $ 598.3 Million /month
Location: Remote-First (San Francisco, California, United States)
Started: 2012
Banks intentionally create this separation to capture a larger net interest margin spread. They want to hold deposits in checking accounts where they pay zero interest, allowing them to monetize those deposits for their own benefit.
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