How do banks earn most of their revenue?

Answer 1

they invest your money, but i dont know if thats what revenue means, does that mean lyk income or sumthin

Answer 2

They take the money from the accounts and invest it in mortgages, blue chip stocks, money markets, and other ventures likely to earn a sufficiently high return.

See the movie "It's a Wonderful Life" for Jimmy Stewart's explanation of how it works when the customers make a run on his family's savings and loan business.

Answer 3

Credit cards, foreign exchange trading, futures and commodities trading.

The "normal" side of banking, mortgages, current accounts, etc are profit neutral, or loss making, but the capital they provide enables the other trading departments to function.

It's not unusual for trade floors to contribute all of a banks profits, and cover losses made on bad loans elsewhere.

Answer 4

I don't know what's the biggest source of income, but they get money from the following:

-When they loan money, they charge various fees to set up the loan.

-And they charge interest at the loan - that interest is higher than the interest they pay, so they make the difference.

-They charge for other services like checking accounts.

-They have a variety of ways to reinvest the money that people have in their bank accounts -- those reinvestments generate more income than the interest paid to the account holders.

Answer 5

Banks earn from hobbies of unpaid balances on credit taking part in cards, and a few additionally will fee a flat annual fee. in case you mostly pay on time you merely are between the few ones who do it suitable, and get the provider for loose.. I wager you do no longer say that credit taking part in cards are evil, the two. properly accomplished and robust luck to you, we want greater of the comparable in this worldwide. RE: How do banks and earn from credit taking part in cards, i dont pay any annual costs or pastime quotes,? i'm employing credit taking part in cards for the previous 3 years( all are existence time loose taking part in cards). No annual costs, i continually make finished money each and each month, so i had in no way paid economic quotes or late fee costs. aside ...

Answer 6

when you give a bank your money, they are immediately investing that money in the stock market, money market, bonds, currency, etc. The money you store with them is invested, and they earn the profits / dividends from those investments.

also charges, fees and interest earned on loans is another source of income

Answer 7

Interest paid on loans they make. Interest earned on investments made with depositor's savings account.

Answer 8

Most of their revenue comes from fees: late fees, ATM fees, overdraft fees, check bouncing fees, fees fees fees. It's all about fees. Banks make a tremendous amount of money on fees.

Answer 9

They make most of their money in the loan department and investments.

Answer 10

Interest & fees on credit cards & credit accounts!!!!
Billions each year.