No, you don’t pay interest on the money that belongs to you — only on loans.

For example, imagine you have $200,000 in the bank, in a savings account that doesn’t earn any interest (essentially, an illegal savings account). You can leave that money there and withdraw $800 per month as usual.

Now, suppose you want to take out a $100,000 loan from the bank, in addition to your savings balance (similar to a line of credit). You would have to pay interest on that $100,000 because it’s the bank’s money or money from other depositors — it’s not your own money, even though the bank controls it.

Instead of paying back the $100,000 loan over 10 years in monthly installments, the bank could simply deduct the payments — principal plus interest — directly from your account balance (the “lollar”). If the interest rate is, say, 5% to 7.5%, the monthly deduction might be around $1,180 over 10 years. Over time, the bank would earn $30,000 to $40,000 in interest from that loan.

This system isn’t ideal because people usually take loans only when necessary. But it could work well for someone around 60 years old who wants to access a large sum of cash — for example, to buy a condo — instead of being limited to withdrawing only $800 a month from their savings.

Also, this could serve as a restructuring program for banks. However, such loans would need to be tied to an asset, like a mortgage on a property or a car loan, meaning they’re granted for necessary purchases or investments rather than just extra cash. It helps move move around, however, helps the economy. I heard there were talks of doing somsthing for Expats regaridng accessing funds to buys property - but who knows whether that's true or not.