How does an increase in savings generally affect interest rates in an economy?

When people save more money, there is usually more money available in banks for lending. This increase in available funds can lead to lower interest rates because banks have more money to lend out and want to attract borrowers. For example, if a lot of people deposit their savings in a bank, the bank might lower its interest rates to encourage more people to take out loans. As a result, when interest rates are lower, it becomes cheaper for businesses and individuals to borrow money, which can help stimulate spending and investment in the economy. Overall, more savings can lead to more lending and lower interest rates, which can positively impact economic growth.