When the feds increase interest rates it makes it harder/more expensive for banks to get loans, where banks whole business is loaning out money with interest. So they won't want to borrow money from the government or other banks to have money available to loan to others. They'll instead incentivise us, the regular Joe schmoes, to keep money in a bank by increasing interest rates in saving accounts slightly.
So Yotta here who is also acting as a savings account would want to do the same to incentivise people to keep investing in their saving accounts instead of taking it to other banks.
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When the feds increase interest rates it makes it harder/more expensive for banks to get loans, where banks whole business is loaning out money with interest. So they won't want to borrow money from the government or other banks to have money available to loan to others. They'll instead incentivise us, the regular Joe schmoes, to keep money in a bank by increasing interest rates in saving accounts slightly.
So Yotta here who is also acting as a savings account would want to do the same to incentivise people to keep investing in their saving accounts instead of taking it to other banks.
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