Question

why do banks encourage people to keep their money in bank? what advantage does the bank get from this?

Answer 1

Heya Mate❤
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ẞanks encourage people to keep their money in Banks(which is Formal Sector)..
1.Money Were Safed in Banks..
2.Banks Give Low Interest ..
3.Provide Loans...
4.You Deposit or Withdraw anytime..
5.Money Will Be increasing with Interest

Answer 2

Whenever banks lend money as loan, they are, in fact giving money from the accounts of people who deposited their money in it. They charge an interest on it which is used to keep the bank running and the remaining interest is their profit. They, therefore encourage people to put money in the banks to allow the bank to give as many loans as possible to maximize profits.

They also give interests on deposits to lure people to deposit their money.