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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.

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Blaze Goldner

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3y ago

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What do banks use depositors money?

The bank customers 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 an interest to the customer who has placed the deposit with them.


Why do banks pay interest on your savings account?

The bank customers 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 an interest to the customer who has placed the deposit with them.


When do you get interest from the bank?

The bank customers 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 an interest to the customer who has placed the deposit with them.


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 is a bank customer's share of the profits made from loans?

A bank customer's share of the profits made from loans is typically reflected in the interest rates they receive on their deposits and other financial products. While customers do not directly receive a portion of the bank's profits, higher interest rates on savings accounts can be seen as a benefit from the bank's lending activities. Additionally, some banks offer profit-sharing programs or dividends for certain account types, which can provide customers with a share of the bank's earnings. However, the specifics vary by institution and account type.

Related Questions

What do banks use depositors money?

The bank customers 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 an interest to the customer who has placed the deposit with them.


Why do banks pay interest on your savings account?

The bank customers 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 an interest to the customer who has placed the deposit with them.


When do you get interest from the bank?

The bank customers 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 an interest to the customer who has placed the deposit with them.


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 is a bank customer's share of the profits made from loans?

A bank customer's share of the profits made from loans is typically reflected in the interest rates they receive on their deposits and other financial products. While customers do not directly receive a portion of the bank's profits, higher interest rates on savings accounts can be seen as a benefit from the bank's lending activities. Additionally, some banks offer profit-sharing programs or dividends for certain account types, which can provide customers with a share of the bank's earnings. However, the specifics vary by institution and account type.


How do you earn interest from money in the bank?

You earn an interest by depositing your money with the bank either in your savings account or through a fixed deposit. The bank grants loans to other customers and earns an interest out of it. Since it is your money they are using to give off loans, they share a portion of the profit they earn with you by means of an interest that gets paid out to the deposit customers.


What is the bank customer shares of the profit made of loans?

Savings account interest and all other forms of interest earned on deposits with a bank is a person's share of the bank's profit made on loans.


What are the activities performs by banks?

Some activities of a bank are 1. Collecting deposits from customers and giving them interest 2. Lending loans to customers (With an interest) 3. Safeguarding customers valuables by means of safe deposit vaults 4. Provide investment services like Mutual funds 5. Provide Depository services (DEMAT Accounts, Share trading etc) The above mentioned list is not exhaustive but are some of the major functions provided by banks these days.


What happens to your money in the CD accounts?

It gets granted as loans to other customers. Banks make money by lending loans out of the money we deposit with them. In case of a regular savings account, you can withdraw your money anytime you want. So the bank cannot effectively use this money to make profits themselves. But, in case of a Certificate of Deposit the bank knows that you will not withdraw the money until the stipulated deposit period, so they can effectively utilize this money to make a profit and therefore share a percentage of the same by means of a higher interest rate.


What are bank's services?

The services offered by banks these days are: * Savings accounts * Current accounts * Fixed deposits * Recurring deposits * Home Loans * Automobile loans * Mortgage loans * Personal loans * Share trading accounts (DEMAT) * Mutual funds * Safety vaults * etc...


How does a short sale affect the bank?

In most cases MIP will take the hit on the loss, or they will apply for some stimulus money... Only banks that had portfolio loans really take the hit, now rules have changed banks will be more responsible for their loans because of a loss share agreements that have been put in place.


What are the activities performed by a bank?

Some activities of a bank are 1. Collecting deposits from customers and giving them interest 2. Lending loans to customers (With an interest) 3. Safeguarding customers valuables by means of safe deposit vaults 4. Provide investment services like Mutual funds 5. Provide Depository services (DEMAT Accounts, Share trading etc) The above mentioned list is not exhaustive but are some of the major functions provided by banks these days.