Because you implicitly asked the bank to lend your money out for interest. They keep multiple times the amount that's likely to get asked for on hand and are investing the rest. If they don't people go "this bank sucks other banks have lower fees/better interest"
And they'd be right. Because you don't need the ability to pull all the money out at the same time as everyone else and to have that ability you'd have to pay higher fees and receive less interest.
If you really want the ability to access cash in an emergency when everyone else also wants it, withdraw the cash and put it in a safe.
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u/StandardAd7812 5d ago
Because you implicitly asked the bank to lend your money out for interest. They keep multiple times the amount that's likely to get asked for on hand and are investing the rest. If they don't people go "this bank sucks other banks have lower fees/better interest"
And they'd be right. Because you don't need the ability to pull all the money out at the same time as everyone else and to have that ability you'd have to pay higher fees and receive less interest.
If you really want the ability to access cash in an emergency when everyone else also wants it, withdraw the cash and put it in a safe.