Bank Deposits: How do banks profit from them today?

#26
#26
Rasputin_Vol said:
Why all of a sudden is Goldman Sachs now allowing people to open accounts with them with practically no minimum, when before the minimum account was over $1 million?
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I don’t know. My best guess would be to grow revenues or to solve a liquidity problem.

If I had to make a bet I’d say the former because I’m sure expanding to the masses will require a lot of capital outlay.
 
#28
#28
Rasputin_Vol said:
Why all of a sudden is Goldman Sachs now allowing people to open accounts with them with practically no minimum, when before the minimum account was over $1 million?
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All of a sudden? The article is from 2016 and I've had my emergency fund with Marcus for a while now. Lots of options for high yield savings accounts but they're one of the best wrt rates
 
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#32
#32
McDad said:
I have interest in this topic.
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If you’re really interested in learning how banks work; the Bank of England published a quarterly bulletin titled “money creation in the modern economy” that explains it better than any source I’ve found. You can probably find it with a quick google search.
 
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#35
#35
Banks in Germany Tell Customers to Take Deposits Elsewhere

Germany’s biggest lenders, Deutsche Bank AG DB -3.76% and Commerzbank AG CRZBY -2.46% , have told new customers since last year to pay a 0.5% annual rate to keep large sums of money with them. The banks say they can no longer absorb the negative interest rates the European Central Bank charges them. The more customer deposits banks have, the more they have to park with the central bank.
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The flip side for customers there, is that in some cases, while they pay to deposit money, they don’t have to pay anything to borrow. Nordea in January started offering 20-year mortgages at 0%.
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#36
#36
There are private banks that offer 4 percent. I bank with one in Utah. The key is to not bank with ones that are regulated.

And yes it legal.
 
#42
#42
I have a nice saving/checking account with Regions, but if you don’t make 10 transactions with your debit card in 30 days, then they will steal 8 bucks from you. That’s how they’re profiting from me today. Sometimes I forget to even do 10 swipes a month.
 
#43
#43
I like my bank. I earn 0.01% on my checking account as long as I keep $10,000 as my minimum balance. As a bonus they treat me like crap whenever do business in person.
 
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#46
#46
Rasputin_Vol said:
Deposit account (How banking works) - Wikipedia

Typically, a bank will not hold the entire sum in reserve, but will loan most of the money out to other clients, in a process known as fractional-reserve banking. This allows providers to earn interest on the asset and hence to pay out interest on deposits.

By transferring the ownership of deposits from one party to another, banks can avoid using physical cash as a method of payment. Commercial bank deposits account for most of the money supply in use today. For example, if a bank in the United States makes a loan to a customer by depositing the loan proceeds in that customer's checking account, the bank typically records this event by debiting an asset account on the bank's books (called loans receivable or some similar name) and credits the deposit liability or checking account of the customer on the bank's books. From an economic standpoint, the bank has essentially created economic money (although not legal tender). The customer's checking account balance has no dollar bills in it, as a demand deposit account is simply a liability owed by the bank to its customer. In this way, commercial banks are allowed to increase the money supply (without printing currency, or legal tender).
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I've pushed this movie on here several times, I tells how fractional banking is used and also talks about a book published by the federal reserve called Modern Money Mechanics. Also goes into many more issues of interest. There is of course liberal propaganda bs past the first hour.

 
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#48
#48
Orange defense said:
I have a nice saving/checking account with Regions, but if you don’t make 10 transactions with your debit card in 30 days, then they will steal 8 bucks from you. That’s how they’re profiting from me today. Sometimes I forget to even do 10 swipes a month.
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Debit cards... no way will i ever have one.
 
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#49
#49
Orange defense said:
I have a nice saving/checking account with Regions, but if you don’t make 10 transactions with your debit card in 30 days, then they will steal 8 bucks from you. That’s how they’re profiting from me today. Sometimes I forget to even do 10 swipes a month.
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I have Regions as well, but my accounts don't require any set number of transactions. I think the only requirement for mine is direct deposit. Regions isn't making any money directly from me in fees, but I'm sure they are loaning my savings out at a much higher rate than they are paying me, which is barely anything.
 
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#50
#50
Withdrawing Your Own Cash? NatWest Bank Wants To Know Why... And See Proof | ZeroHedge

Here in Canada, for at least a few years – predating COVID, the big four banks have been routinely asking you why you are taking cash out whenever you withdraw anything over a couple thousand dollars. However, you can tell them pretty well anything (“because I want it”, “none of your business” or even “to blow it all on booze and hookers”, will all work). I haven’t heard of a case where a withdrawal has been denied based on the reason supplied, yet.
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natwest-notice-1.png
 
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