That&#x27;s not how it works. The current rate isn&#x27;t 6% either.<p>If Banks loan money to the Federal Reserve, they are unable to pull the money out for X number of days. If they need the money <i></i>now<i></i> (ie: Liquidity Crisis of 2007), they can go bankrupt despite having a lot of cash stored elsewhere.<p>So no, it isn&#x27;t a risk free practice. Managing liquidity (ie: loaning money to the public in the form of Home Mortgages or Car Loans, or taking in deposits and depositing it into investments like the Fed baseline rate to make money 6-months or 1-year from now) is the <i></i>very point<i></i> of a bank. If you think its easy, you can go ahead and form your own bank.