Yusra3
VIP Contributor
Banks make money by charging fees.
The first thing you need to know is that banks don't actually make any money. They're not "businesses" in the traditional sense. they're just a collection of assets and liabilities, like any other kind of financial institution.
So how do they make money? The answer is simple: They charge fees for everything from checking accounts to home loans and other services. If you want to start a business account at your bank, or get a loan from them, or even just open an account for yourself so that you can pay bills online, there will be a fee associated with it and sometimes it can be pretty steep!
This means that if you want to run a business and need funding from somewhere other than your personal savings account (which is usually only accessible via credit cards), then going through the bank route may not be the best option for you unless they offer some kind of discount or promotion around doing so.
The first thing you need to know is that banks don't actually make any money. They're not "businesses" in the traditional sense. they're just a collection of assets and liabilities, like any other kind of financial institution.
So how do they make money? The answer is simple: They charge fees for everything from checking accounts to home loans and other services. If you want to start a business account at your bank, or get a loan from them, or even just open an account for yourself so that you can pay bills online, there will be a fee associated with it and sometimes it can be pretty steep!
This means that if you want to run a business and need funding from somewhere other than your personal savings account (which is usually only accessible via credit cards), then going through the bank route may not be the best option for you unless they offer some kind of discount or promotion around doing so.
