How can bank earn so much money?

Well you might be one of the few people wondering how come bank earns so much money. Well we know that they hold our pounds, but how do they really profit? Here are some of them

Interest from what people pay from deposits and loans. When a person goes to a bank to get a loan, they will sign paperwork stating they will pay the money at a certain interest. This interest is higher than the federal rate; this difference is one way to make money.

They can earn money from ATM or automated teller machines. ATM may charge you for additional fee on inquiry if you get to inquire or withdraw from a different bank on a different atm. This is quite sleek and simple and everyone knows about this, but this mainly is a one good source of money for them.

They can also make money from fees. You may pay for some services that you have asked from the bank. It may be a checking account which is the most common; the charges vary from each bank for this one. Also when you bounce a check they may charge you as well. This is where usually the unfair bank charges occur. They may increase the price unreasonably and get much amount from overdue payers.

Also you may not know that some banks allow lenders and advisers to apply us to mis soldmortgages or mis sold policy insurance. This is not good at all for you may find it difficult to pay the charges which usually are overpriced, and when you pay late then you surely are paying a whole lot more. So best advice, know this stuff and keep posted!