What Are Some Ways Banks Make Money
Five Ways Banks Will Make Money in 2010 - TheStreet
Sethi know his audience. I Will Teach You to Be Rich is aimed at 20-to-35 year olds, and it’s essentially a guide to getting your finances on track. The book covers a six-week program that automates saving and jump-starts investing — with more than a little information on banking, budgeting and entrepreneurship along the way. The information is very targeted: heavy hitting chapters on banking, for instance, are aimed towards readers who aren’t quite up to speed on all the ways banks make money off of account holders. That may seem to guarantee that the book will only offer introductory level material on personal finance, but I was surprised to see that it actually goes pretty in-depth. On the topic of banking, for instance, Sethi dives into the complexities of overdraft fees to the extent of providing guides to negotiating your way out of that first overdraft fee.
Take Alibaba as an example: the company already operates its own payment system (Alipay), it has seen the money market funds on its platform sell faster than egg tarts from a Macau bakery, and it has lately applied for its own banking license. This is a development that makes perfect sense. Who knows more about the business of mid-size
companies in Chinas industrial belt? Alibaba or the local bank? For that matter, we would venture that Google, Amazon and the rest probably also know more about the Gavekal readership than their local banks. All of which brings us to the three ways banks make money, specifically:
How do banks make money? - How Banks Work - HowStuffWorks
I have to admit that I am not always completely debt-free. I have a line of credit at my bank that I rarely use. It is nice to have, and it costs me nothing if I do not use it. Last time I used it is about 10 months ago, and I only used it for two days. I digged into it partly because I was low on cash, but mostly because I wanted to be a good customer at my bank. If I did not do something something this this, I guess my bank would hate me. They failed at all the usual ways banks make money from their customers. Banks are corporations who want to make money from their customers, and I am a conscious banking consumer.