<prompt> Human: Sorry if this is the wrong place to post this but this has been bugging me. Compounding interest seems like free money over time but that money has to come from somewhere which is obviously from the bank. My question is what does the bank have to gain from giving individuals money that has the ability to grow significantly over time?  <response>: Because otherwise customers will bank somewhere else. They earn significantly more off your money than the shitty interest rate they give you. 