how do banks make money?

Answer 1

By the fees they charge you
- monthly fees
- using your ATM card fees
- Loan fees
- pennalty fees - repayment late fees
- overdrafts fees
- insurance
- fees for exchanging world currency
............... the list is endless.

I think the main factor is the HUGE interest you pay back on loans from them such as a home mortage.

Answer 2

Banks have several ways to make money. Lending loans is the way in a broader perspective. But in a closer look they invest in businesses (most times through their subsidaries) that can generate more income than interest rates.

Also exchange rate fluctuations bring them some money.

Now a days banks earn by direct injection of capital into equity market and raising funds (Mutual funds) to invest into equity and bond markets.

Prakash

Answer 3

The deposits of the people will be loaned out. The loan given by the bank will have an interest about 5 to 10 times higher to the interest in deposits that they're giving to the depositors.

Answer 4

Banks don't make money.
Its the Central Bank of the Philippines.

But banks, earned money from interests rates and different charges from its clients.

Answer 5

Print them. No, actually, from interests like bank loans, house or car mortgage loans, fees from bank drafts etc.

Answer 6

fees
fines
and most importantly,
they loan out money and charge interest rates higher than what ur savings rate is.

Answer 7

Interest in loans. Also when you save your money with them, they reinvest it in other areas.

Answer 8

Interest rates.

Answer 9

selling money to you at inflated rates