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What do banks do with some of the profits they make by loaning out money in their customers savings account?
Wiki User
∙ 8y ago
They invest the money in high interest money markets and various other accounts. They don't loan out their customer's savings accounts, they loan out the money they make off these accounts.
Elyse Daniel
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What do banks do with some of the profits they make loaning out the money in their customers saving accounts?
pay interest on savings accounts
What do banks do with some of the profits they make by loaning out the money in their customers' savings accounts?
Pay interest on deposits, use it for their operational expenditure, to pay salaries to its employees etc. Pay interest on savings accounts
What is bank customers share of the profits made on loans?
Savings account interest is the bank customer's share of the profits made on loans.
What do banks do with some of the profits they make by loaning out the money in their customers saving account?
They invest the money in high interest money markets and various other accounts. They don't loan out their customer's savings accounts, they loan out the money they make off these accounts.
What do banks with some of the profits they make by loaning out the money?
pay interest on savings accounts
What do banks do with some of the profits they make loaning out the money in their customers saving accounts?
pay interest on savings accounts
What do banks do with some of the profits they make by loaning out the money in their customers' savings accounts?
Pay interest on deposits, use it for their operational expenditure, to pay salaries to its employees etc. Pay interest on savings accounts
What is bank customers share of the profits made on loans?
Savings account interest is the bank customer's share of the profits made on loans.
What do banks do with some of the profits they make by loaning out the money in their customers saving account?
They invest the money in high interest money markets and various other accounts. They don't loan out their customer's savings accounts, they loan out the money they make off these accounts.
What do banks with some of the profits they make by loaning out the money?
pay interest on savings accounts
What do banks do with some of the profits they make by loaning out the money in their customers savings accounts?
They invest the money in high interest money markets and various other accounts. They don't loan out their customer's savings accounts, they loan out the money they make off these accounts.
What do banks do with some of the profits they make by loaning out the money in their customer savings account?
They invest the money in high interest money markets and various other accounts. They don't loan out their customer's savings accounts, they loan out the money they make off these accounts.
Does Emirates Islamic offer a share of bank profits to its customers?
Yes, Emirates Islamic does offer its customers a part of profits under investment savings account. It announces the profit rate for each quarter under varied deposit slabs.
How can banks afford to pay interest n their customers savings account deposits?
Because they're loaning the money in those deposits at double or more the interest rates that they're paying the depositors.
What banks pay to their savings account customers?
Interest
What is a banks customer's share of the profit made on loans?
The bank customer's share of profit made on loans by the bank is called the "interest." It is the money the bank pays the customer for having their money deposited with the bank. As you know, the bank earns an interest income from loan customers for the money they lend them, and since this money they lend is taken from the deposits placed by customers, banks share the profit by paying interest to the customer who has placed the deposit with them.
Which services do banks offer?
Banks offer investment opportunities. They also offer a savings account where you can invest your money in the bank itself so they can use your money to give people money in the form of loans. They give you some money back in the form of savings interest.
