For people who work in banks, where does the money come from that's used for paying them?

Question

Apart from overdraft fees, I haven't heard about banks' customers paying their banks.

Anonymous · Answer

They just take money as they need out of your account.

StephenWeinstein · Answer

Most from interest paid by borrowers.

Satan · Answer

Fees, investment, interest on loans etc

Amy · Answer

> "I haven't heard about banks' customers paying their banks."

Yes you have. You're thinking only of checking accounts, but banks do a lot more than that. They make loans: mortgages, personal loans, even loans to other banks. The customers who borrow money pay interest (at a much higher rate than the bank pays you for your checking account).

Lôn · Answer

Mortgage fees are higher than interest on savings accounts.

Anonymous · Answer

From fractional reserve lending.

NA · Answer

The banks loan the deposits out and. Charge interest.

For people who work in banks, where does the money come from that's used for paying them?

7 Answers