2006-08-22 13:46:02 · 10 answers · asked by Haopei 2 in Business & Finance ➔ Credit
They lend your money out and charge the borrower high interest .
They charge bank fees for holding an account and they charge people to have safe deposit boxes at the bank.
They also have investments and bussiness adventures and use depositers money to make these investements.
They loan money to individuals and if this person doesn't make the payment on time ...they take their property...homes, boats, bussiness, cars everything.
2006-08-22 13:48:10 · answer #1 · answered by toe poe gee gee oh 5 · 0⤊ 0⤋
Banks make profits by selling products and services, and also by investing. Some products have flat fees, such as the fee to rent a safe-deposit box. Others are based on percentages such as interest charged on a mortgage or vehicle loan. Banks also invest the funds you have on deposit with them. This is the basic reason why they pay you interest for depositing your funds with them. They expect to make a higher return from their investments than you make on your savings account. It all adds up in the bank's favor.
2006-08-22 13:50:53 · answer #2 · answered by Freddie 3 · 0⤊ 0⤋
There are alot of ways ... interest rates on loans and credit cards, late fees, overlimit fees, application fees, checking and savings account fees, notary costs, cashier check fees, and more. Take those fees by the number of customers that banks have and you'll see that banks do quite well with profits.
2006-08-22 13:53:28 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I wondered that one myself for awhile.
It makes you think though, why would I want to entrust my hard-earned money to people who are trying to turn a profit from it?
The 1st posted has the correct answer though - interest, loans, stocks, turnarounds - things like that make them money by using your money temporarily.
2006-08-22 13:52:16 · answer #4 · answered by J-Pizzle 3 · 0⤊ 0⤋
They charge high interest rates on credit cards and on auto mloans and house loans and when they have excess cash laying around they invest it in the treasury market.
2006-08-22 13:52:49 · answer #5 · answered by Anonymous · 0⤊ 0⤋
They loan people money, then charge high interest rates, among othrer things, like random fees. It might not seem like much, but add it up among all their customers, it adds up fast.
2006-08-22 13:48:18 · answer #6 · answered by Manu 2 · 0⤊ 0⤋
They charge interest for lending money out and with theose monthly fees.
2006-08-22 13:49:43 · answer #7 · answered by anisarkisyan 3 · 0⤊ 0⤋
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2006-08-22 13:49:27 · answer #8 · answered by Anonymous · 0⤊ 0⤋
from loan - they gain a lot of interest in loan
also from stock/investment too
2006-08-22 13:50:00 · answer #9 · answered by Travis 4 · 0⤊ 0⤋
lots and lots of hidden fees
2006-08-22 13:55:32 · answer #10 · answered by jeangrae 2 · 0⤊ 0⤋