My website is going to be collecting money. Can I legally hold other peoples money, without being a bank? Also, can I keep the interest on that money as well?
      Answer1:How are you planning on earning interest by keeping money outside a bank? How do you plan on actually getting the money if you dont have a bank? What are your reasons for not wanting a bank?Most dont have any fees if you keep your balance above a minimal amount, which is usually like $15 or $20. Why not just do it and get it over with? Its FDIC insured in most banks for up to $100,000.
      Answer2:How do you propose to collect this money. Whether you use Paypal or a merchant service it has to be deposited initially to a bank account or card account.You dont need to be a bank. You can for example, collect deposits or payments for things like holidays or other services, or for payment for goods you supply. If you have credit accounts with suppliers, your customer will pay you for the goods when thay are despatched, you may not have to pay your supplier for 30 days or more.There are a lot of honest ways to be holding money. There is nothing illegal whatsoever in banking the money you are holding and earning interest on it for yourself. These are the internal workings of your business and are nothing to do with anyone else.The people whose money you are holding have no rights to any interest you earn, just as they would not be expected to pay the interest on any money you may borrow to fund services to them.