pls give me some examples...............
how did they make money on deposit, load or cash management?
so banking is a never lose business?
charter bank is making billion of profit.......is it mostly by cash managment??
2007-08-07 13:28:24 · 7 answers · asked by colorfulbooks 2 in Business & Finance ➔ Other - Business & Finance
Banks can lose money by offering higher return rates on CD's , MMA's, and other accounts if they can't afford to pay the money back to their customers. Banks give up to 6% on some deposits. They do this to collect enough money to charge higher interest rates for business and personal loans.
For example, if you loaned me a dollar at 6% and I loaned that dollar at 10% but never collected the money, I could not pay you the $1.06 that I owed you.
The FDIC is a form of insurance that guarantees your money so you would probably get your $1.06 anyway.
2007-08-07 13:41:53 · answer #1 · answered by Max 7 · 0⤊ 0⤋
2
2016-07-21 09:02:00 · answer #2 · answered by ? 3 · 0⤊ 0⤋
It depends on the bank. Most banks allow people to take out loans like house car or student, and charge interest. Even though the interest itself isnt' rediculously high, the amount of money loaned is huge, and banks make their profit from such. Also annual fees, overdraft charges, monthy fees, and credit cards, contribute to the rest of the profit.
2007-08-07 13:34:42 · answer #3 · answered by Benjamin 2 · 0⤊ 0⤋
banks make money from loaning out money for loans, mortgages, etc and charging higher interest rates than they pay to get people to deposit money with them
2007-08-07 13:32:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Most banks make their money in loans.
2007-08-07 14:48:29 · answer #5 · answered by Gary 5 · 0⤊ 1⤋
Fill Surveys Get Paid : http://OnlineSurveys.uzaev.com/?iwVR
2016-07-07 16:40:25 · answer #6 · answered by Roselyn 3 · 0⤊ 0⤋
who is banking?
2007-08-07 13:31:39 · answer #7 · answered by greengirl24 3 · 0⤊ 1⤋