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455 Shahbad Daulatpur, Delhi-110042
Nearest Metro Station Samaypur Badli Or Rithala How banks earn money?
Ever thought of this? How bank make money or from where does bank earn money?
Banking is a business. They need to grow and expand. There are various ways to do that.
Banks lend money to customers as loan at much higher rate than they borrow. This results to increase in funds. Customers are charged fees for various account services like cards, ATM, late fees, etc.
Banks lend loan at a higher say 12% than they provide to customers at deposit of money say 4%. So net profit is 8% which is the earning of the bank. Banks do invest in bonds, mutual funds, etc and earn more.
In addition to this, there are numerous other ways. Watch this video to learn more.
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