"You're thinking of this place all wrong. As if I had the money back in a safe. The money's not here. Well your money's in Joe's house. That's right next to yours and in the Kennedy house and Mrs Melan's house and... and a hundred others."
Yup. Even decades later the system is the same. If I went to my local bank to withdrawal all my money, it's extremely unlikely they'd have enough to cover it unless it was a prominent bank in a fairly large urban center. And that's just one person. Hell, most banks don't have liquid assets to cover all their customers cash if they all start pulling it out.
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u/ChocolateNo3010 5h ago
As I understand it for savings, you are charged for keeping money in a bank account, so rather than getting interest you lose money.