Adios
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Banks make a spread on the money they take in on deposit and then loan to other people. You deposit money in an account and are paid no interest or say 2%. The bank loans the money in a credit card at 17%... the difference is gross profit. Banks also rent safe deposit boxes, earn fees for servicing mortgage loans, fees and commissions for investment products, etc...
WAMU (and others) use the "no fee" checking to attract low cost retail core deposits to fund their loans. |
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Specialist
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-interest
-investment
-stocks
-currency speculation
all about mathematics...risk too. |
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chopper
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My charging ourtageous amounts of interest and bank charges. Trust me they make billions |
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tim n
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they charge you a lot of money to borrow from them, and dont give you as much interest if u lend money to them(this is done byu storing money in your bank account) HOWEVER this is a very risky way of making a living, because they always lend more money than they have... |
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gjjr@sbcglobal.net
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In simple terms Banks make their money from lending out money to consumers and businesses in need of loans by using depositor funds such as savings accounts and checking accounts. The way the bank makes a profit is by charging an interest rate for those seeking loans. The bank offers free checking to induce more depositing customers so they can in return lend out more money ultimately making more profits. |
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cziizi
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from loans and the interest accrued in the payments. |
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foogill
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They lend money at a higher interest rate than they pay on deposits. The gap is the profit margin. |
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Andy FF1,2,CrTr,4,5,6,7,8,9,10
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from loaning out your money to others...
Just because you keep money at the bank doesn't mean they lock it up for you. They put it to work loaning it to small businesses and other customers...
But because depositors need their money from time to time they have to keep part of it in reserve to be able to pay out withdrawal requests.. The percentage they have to hold onto in reserve varies depending on the type of account... for CDs since it is harder for you to make a withdrawal, their reserve requirements are lower and therefore they can use more of the money and be able to pay you a higher interest rate.... |
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Island_Girl
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Banks make money through interest that they charge you for holding your money. Also, if you have a checking account, and you over drawl, they charge you for that. If you dont have "x" amount in your account, they can charge you for that as well. |
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sargosis
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banks make money when people borrow money from them. they charge interest. |
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dutch_luvs69
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YOU NEED TO ASK -i AM DUMBFOUNDED . DID YOUGRADUATE GRAMMAR SCHOOL YET ? |
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