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How banks make money on deposits

how banks make money on deposits

Banks “buy” money from depositors. Then, they can lend that money out, “selling” it to borrowers. Banks often pay interest on deposit accounts. 25%. The bank needs deposits to maintain liquidity, and be within reserve reqirements, but they'd rather pay you, or That being said loans and fees are the. 1. Profits from debt interest. When you deposit your money in a bank account, the bank uses that money to make loans to other people and businesses.

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How Banks Create Money Banks are getting desperate these days; bankers have even been known to practically beg customers to how banks make money on deposits money! June 15, at pm. Prev NEXT. We've saved your response. Sign Up for free weekly money tips to help you earn and save more. When you were first choosing a bank, did you stop to think about how banks make money? how banks make money on deposits

1 thoughts on “How banks make money on deposits

  1. saravanab kumar

    එහෙම කියන්න එපා, හැම එකාම එහෙම තමයි, රාජපක්ෂලාට විතරක් ගල් ගහලා අනිත් එව්වො ආරක්ෂා කරන ජනප්‍රිය ක්‍රමය අත හරින්න!

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