Paying or requiring interest on loans is a common part of American life. For instance, credit cards often have high interest rates triggered by a certain amount of time without payment (or paying less than the statement balance each month as opposed to the total balance); student loans accrue interest over time at fixed rates. Principal is the amount borrowed or loaned, and the interest is a sum paid/required beyond that amount, a percentage of the principal added to it. It is logically possible to pay or accept interest without anyone mandating it, as foreign as this is to much of America's economic structure.
Someone who refuses to provide a loan apart from an agreement to pay back the principal plus any additional amount is charging interest; they are actively requiring it as a condition to loan money in the first place. Contrarily, someone who allows another person to utilize their money does not charge interest if the latter individual freely offers repayment with interest as an incentive for the former individual to initially provide the loan. In this case, the one offering the principal for use by a second party has not charged anything because they are accepting an offer.
Either scenario winds up with the person lending their money gaining an additional amount above the amount loaned out, given that the debtor does indeed pay everything back. However, the means of acquiring that interest is incredibly different. One of these means is passive on the part of the one providing the funds. This is what happens with high-yield savings accounts, where the interest paid to the one putting their money in the account helps offset the eroding power of inflation or even stay ahead of it by multiplying the principal month to month, on which a new amount of interest is paid. Thus, funneling money into a high-yield savings account is like making a loan of sorts.
Loaning money or other capital, especially to vulnerable people in need of financial assistance, while charging interest up front is objectively distinct from receiving interest offered by the other party. This logical truth is of enormous relevance to a key Biblical command about interest: that of not charging interest to one's fellow countrypeople (Deuteronomy 23:19-20). Yes, it is not merely usury to charge interest to one's countrypeople at a given high rate, but it is sinful to do so at any rate! It is nonetheless logically possible to accept interest without actually charging it. Similarly, if a poor person voluntarily repays a loan and supplies anything past the principal, the one who accepts the "interest" has not violated the obligation of Exodus 22:25 and Leviticus 25:35-37.
Even on an amoral level, there is nothing exploitative (one person trampling on another) about one party using the payment of interest to those who supply them with funds as a way to attract investors. It might seem like a trivial distinction, albeit a correct one, but there is no small gulf between demanding/requiring interest of others and taking additional money that they give to you in return for having assisted them or permitted them to borrow money. The difference is one that does divide a Biblically sinful act, exacting interest from fellow countrypeople or those in one's community, from an innocent one, taking interest that a bank, businessperson, or other borrower freely shares to prompt a flow of resources that likewise benefits them.















