Get loan from bank1

>get loan from bank1
>invest loan amount at bank2 for 1 year
>repay loan to bank1
>earn free interest from bank2 with bank1's money
Any of you guys wanna refute my scheme? I'm a novice so just say if this could work or not

Other urls found in this thread:

i doubt the interest outweighs the negative interest for the loan.

i think the banks are winning, bank 1 gets interest on your loan and bank 2 makes interested on the investment you get back.

The interest you need to pay bank 1 will be more than the interest bank 2 will pay you, unless bank 1 gives you an interest free loan.

Banks make money from interest from the loans they give. Why would they pay you more than what they take

what the banks do is actually irrelevant if your goal is to make money yourself

where to cop 100% interest rates from bank2?

This has some merit if youre taking advantage of sign up bonus interest rates as a new client at Bank B. And if Bank A is giving you an interest free loan. Or if you have something like student loans that only accrue interest upon graduation (or something similar). Take free money if you can get it

bank 1 gives you a personal (unsecured) loan at 8.9%
bank 2 pays you a maximum of 3%

great way to lose money

>get loan from bank1
>fly to a third world country and never come back
>live like a king

this is now a Stellar Lumens thread



>Any of you guys wanna refute my scheme?
With the current interest rates the interest doesn't even cover the inflation.
The interest is 0.01% to 0.1%, while the loan interest is 1% to 8%.


Do you ever wake up and think to yourself 'how did I ever get this fucking retarded'?

Serious question. Are you aware of your cognitive disability?

Ummm all you idiots are forgetting something.

He has to 'repay loan to bank 1' right? So they amount he repays he is no longer earning interest on. The interest from bank 2's money is negated by the interest lost from your own money.


2 people fuck around with loans

one is winning

guess what the other one is doing? hint: not winning

banking doesn't work this way. You are assuming jews to be this dumb?
Would work if you get a loan and invest in something profitable.



Why use different banks? You can do both at the same bank. It's called "investing on margin". People do it all the time. It's risky, of course.




What if you just do it in reverse? Free lambos 5% interest a year

That's exactly how banks operate, you dingus. They take the money people deposited with them and give out loans.

ITT: what is arbitrage?

This could only work if Bank2 guarantees a higher return on its accounts than the interest rates from Bank1. This would leave the market out of equilibrium.

These things occur every now and again, but only for very brief length of time. Bank1 and Bank2 would quickly be overrun by so-called arbitrageurs, trying to become millionaires, and millionaires trying to become billionaires, and if Bank1 didn't raise its rates, and Bank2 didn't lower its rates quickly, both would go out of business. The market would be back in equilibrium before news of this opportunity would even reach you.

Basically, there is no "risk-free, guaranteed money-making button" that you can just push. Or as the old saying goes, there's no free lunch.

Now, you can certainly borrow at a certain interest rate, and invest, hoping to earn a return higher than the interest, but there's no guarantee that you'll make it. If your return ends up lower, you'll be on the hook for a loan that you can't pay off.


This, well explained. I tip my fedora to you.

.001% on savings

.25% on loans

Solution: rob the banks and fuck their CEOs to death

Tbh the simpler solution is to take a loan at 7%, Buy a baseball bat, and loan shark it out at 15%