It is illegal for banks to charge higher interest rates for loans than they pay depositors.

Name: It is illegal for banks to charge higher interest rates for loans than they pay depositors.
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Banks can charge higher interest rates for loans than they pay depositors. This is how they make a profit. However, there are laws in place that regulate the maximum interest rates that lenders can charge on certain types of loans, such as payday loans, to protect consumers from excessive interest rates.

It Is Illegal for Banks to Charge Higher Interest Rates