how do banks make profits?

Answer 1

Here are the different ways they make profits

1) You put in money in the bank, then
2) Your money is lend out to people looking for a loan, so they charge whatever interest rate on the loan. You get 1% interest on your savings while the bank keeps the difference AND/OR
3) Your money is invested in the stock market. Banks get an average rate of return of 12% on the investment, you get 1%.
4) Banks make money by charging ridiculous fees for anyone who overdrafts the checking account
5) They make money by charging monthly service fees if your account is below a certain minimum.
6) They make money by charging ATM fees.

When the last time you heard of a bank going bankrupt?

Answer 2

they take some of your money when you put some into the bank. Every month they take some money out. Another way is
lending money mortgages bank charges ATM fees investments. paying low wages to staff. The last way is they invest your money and you get a small percentage of the profits, mortgages, interest rates, charges for going overdrawn which for me is £30 so they made about £300+ out of me on that, different things. That's about all the ways

Answer 3

they invest your money and you get a small percentage of the profits, mortgages, interest rates, charges for going overdrawn which for me is £30 so they made about £300+ out of me on that, different things

Answer 4

they charge various fees for using their products or for going into overdraft. They also make money on the interest they charge on loans.

In addition to that, I believe that banks are also investing the money that is being held at their institution in various places so they money being held there is also making money for them.

Answer 5

lending money mortgages bank charges atm fees investments. paying low wages to staff

Answer 6

the biggest way banks make money is through the lending process-loans they also make money on banking fees.

Answer 7

interest rates