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Banks base their interest rates on the prime rate, which is the rate at which the Federal reserve gives for loans to financial institutions.
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∙ 11y ago
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Can a muslim use the money of bank interest if no then what should he do with interest money?
No. A Muslim cannot use the money of bank interest so they can give it away to others or use banks that do not give interest.
What is the fee that banks pay a fee to use your money?
Deposit interest.
How do I find which banks have high interest rates?
You can check online to find the interes rates for different banks. You can use a search engine or check the websites of the different banks to find ones with the highest interest rates.
What banks offer online savings accounts with high interest payouts?
There are several banks that offer online savings accounts with high interest payouts. The best banks to use for this are Suntrust and America's First Bank.
How banks use the money that people deposit?
Loans & of course they earn interest on it.
Banks pay their costumers interest on the money in their accounts for what reason?
Banks pay their consumers interest on their money in their accounts because, the same money is what the bank use to lend loans to other customers. As they are going to earn an income through the interest they charge the loan customers, banks give a portion of that interest as interest for the customers who have deposited their money with them.
What does a bank do?
In basic terms a Bank accepts money for deposit - paying interest for the use of people or companies money - protecting it and then turns around and lends that money out charging a fee and/or interest for the use of loaned money.Today banks facilitate transactions, such as direct deposit or purchases through electronic means.
Would banks decrease or increase interest rates if they had less money to loan?
If banks had less money to loan they would increase their interest rates. This is because they would have to make the most profit off of the little money that they had to use. When banks have a lot of money to loan, interest rates are lower because they can still get a lot of interest even from the lower interest rates.
Banks that compound interest?
All banks do this.
How do banks encourage people to use accounts to save money?
high interest rate
What is the difference charged by banks on loans and the interest paid on the money deposited?
It is the income for the bank. Banks charge loan customers an interest whereas they pay an interest to deposit customers. The difference in interest rate is the income for the bank. They will use that for their operating expenses as well as to make a profit.
Who regulates interest rates?
To a certain extent the banks do. But the Fed, which lends money to banks, can have an impact on it depending on what interest they charge the banks.
