Скачать или смотреть How Banks Make Money?

In this video, we explore How Banks Make Money even though they don’t sell any products. First, when you deposit money in a bank, they pay you interest of about four to five percent. But if someone takes a loan, the bank charges them ten to twelve percent interest. The difference of roughly five to seven percent is the bank’s direct profit from your money.

Second, banks charge service fees for using their accounts and services, such as debit cards, credit cards, or safe deposit lockers, on an annual basis. These charges, often referred to as service-charge fees, provide a steady additional source of income.

Third, banks invest and trade with the money you deposit. They invest in mutual funds and equities, and the returns they earn on these investments generate even more profit.

Together, these three methods, interest spreads, service charges, and investment returns, are exactly how banks earn their money.

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