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Why is a bank willing to protect your money for free or a low cost?
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∙ 8y ago
The main business of banks is to take the money they receive in deposits, pay minimal if any interest to the deposit account holders, and loan that money out to others, who in turn pay the bank interest on the loan.
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Why is a bank willing to protect your money for free or for a low cost?
The main business of banks is to take the money they receive in deposits, pay minimal if any interest to the deposit account holders, and loan that money out to others, who in turn pay the bank interest on the loan.
Why is the bank willing to protect your money for free or for a low cost?
Because your money isn't actually IN the bank; the bank lent your money out to somebody else. It's called "fractional reserve banking". A hundred people deposit money in the bank, and the bank promises to pay interest on the money. Then the bank LOANS OUT some (actually, most!) of the money to start businesses or buy houses. The borrower pays more interest to the bank than the bank pays to you, so as long as the loans are good and people pay their mortgages on time, everything is fine. The problem comes when two things both happen around the same time; people can't make their mortgage payments, AND the people who had deposited money in the bank start to get nervous and want their money back. When lots of people all want their money back at the same time, it's called a "run on the bank", and the bank won't be able to give the depositors their money - because the money was lent out to businesses that are failing, or for homes where the people can't pay their mortgages. The U.S. government sponsors "deposit insurance" so that the depositors don't have to worry that they won't be able to get their money back. And since there's no worry (or not much!) there are few "runs on the bank" these days.
Where can I get a money order and how much do they cost?
You can get a money order at any bank for a fee, depending on what bank you deal with and in what country. They all have different rates.
Does it cost money to withdraw from a savings account?
depends on your bank/credit union
which bank offers no closing costs mortgages?
No closing cost mortgage can save you a lot of money in upfront fees. One of the banks that offer low cost or no closing cost mortgages is Citizens Bank.
Why is a bank willing to protect your money for free or for a low cost?
The main business of banks is to take the money they receive in deposits, pay minimal if any interest to the deposit account holders, and loan that money out to others, who in turn pay the bank interest on the loan.
Does love dont cost a thing?
No, love does not cost a thing . If your willing to give your love , that should be what you give . Not money .
Why is the bank willing to protect your money for free or for a low cost?
Because your money isn't actually IN the bank; the bank lent your money out to somebody else. It's called "fractional reserve banking". A hundred people deposit money in the bank, and the bank promises to pay interest on the money. Then the bank LOANS OUT some (actually, most!) of the money to start businesses or buy houses. The borrower pays more interest to the bank than the bank pays to you, so as long as the loans are good and people pay their mortgages on time, everything is fine. The problem comes when two things both happen around the same time; people can't make their mortgage payments, AND the people who had deposited money in the bank start to get nervous and want their money back. When lots of people all want their money back at the same time, it's called a "run on the bank", and the bank won't be able to give the depositors their money - because the money was lent out to businesses that are failing, or for homes where the people can't pay their mortgages. The U.S. government sponsors "deposit insurance" so that the depositors don't have to worry that they won't be able to get their money back. And since there's no worry (or not much!) there are few "runs on the bank" these days.
Where can I get a money order and how much do they cost?
You can get a money order at any bank for a fee, depending on what bank you deal with and in what country. They all have different rates.
Is your money safe in the bank from creditors?
No, they can obtain a court order of garnishment and remove your money at a cost to you.
Does it cost money to withdraw from a savings account?
depends on your bank/credit union
How can you use the word inaction in a sentence?
The surrounding citizen's inaction to stop the bank robber cost the bank a loss of money.
which bank offers no closing costs mortgages?
No closing cost mortgage can save you a lot of money in upfront fees. One of the banks that offer low cost or no closing cost mortgages is Citizens Bank.
What is plus mod balance in bank loan?
plus mod balance in bank loan is the money who pay on the bank that you loan with interest rate and original cost.
What is cost of transfer?
The cost of transfer code is a specific code used when one transfers money from one source to another. The specific code used for this transfer will vary from bank to bank.
What does 'the greedy man has no tomb' mean?
This is ONLY a guess, but...tombs cost money to build and a greedy would not be willing to spend the money to build his own tomb.
What is -cost of transfer code?
The cost of transfer code is a specific code used when one transfers money from one source to another. The specific code used for this transfer will vary from bank to bank.
