this post was submitted on 20 Aug 2023
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[โ€“] [email protected] 6 points 1 year ago (1 children)

They are exceptionally shitty for cash accounts since they are absolutely using the money for their own profit.

If everyone took out all their liquid cash, the bank would crash (see; recent events.)

[โ€“] [email protected] 3 points 1 year ago

I don't know if it is quite as simple as that. Most recently the bank failures were because those banks got upside down on bond holdings due to rate increases. If everyone chilled out and took their money out in appropriate time, then the bank would have had all the money. They just couldn't get all the money immediately due to the duration of their bond holdings.