How is offering high-interest savings the equivalent of throwing money into a fire? A bank offers higher interest than competitors to attract more deposits, which it lends out (with leverage) at a higher interest rate than what it pays to depositors.
To promote the ecosystem as inflation-resistant, and encourage it's use.
> Isn't it the equivalent of throwing money into a fire?
Not any more than, e.g., offering a high-interest savings account is.