Interest is not only to protect the bank (or lender) against inflation. It's also (one of ) the way that the bank gets paid.
For a moment suppose that there is no inflation, no fraud, no bankrupts and no administrative commissions: If the bank gives you $100 and you pay in total $110 then the profit of the bank is $10.
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Interest is not only to protect the bank (or lender) against inflation. It's also (one of ) the way that the bank gets paid.
For a moment suppose that there is no inflation, no fraud, no bankrupts and no administrative commissions: If the bank gives you $100 and you pay in total $110 then the profit of the bank is $10.