Investment bank deposits are how to make money

1, earn interest differential. The most traditional profit model of the bank is to rely on low buy "high sell". For example, you go to the bank for a five-year deposit, the bank only gives you 2.75% annualized interest. Then the bank lent you the money, charging each other 4.9% interest. That's how you earn the 2.15% interest difference with empty hands. According to the object of the loan, it is generally categorized into commercial loans, real estate loans, consumer loans, and interbank loans.

2. Fees and commissions. Like Uncle Zhengtai last year and this year has been transferring money to the U.S. stock and Hong Kong stock accounts, so each time I need to first currency exchange, and then overseas remittance. The bank charged me a lot of commission on these two steps. I use CCB, first of all it will charge me a handling fee first every time, the fee is 0.1% of the amount I send.

3. Other fees. In addition to those above, the bank will also charge agent fees, consulting fees, guarantee fees, annual fees, card fees, management fees, checking fees and so on. And in the past few years, the more popular business income mainly comes from trust business income, securities trading income, third-party custodian income".

4, on the deposit of reserves. Banks will deposit money to the People's Bank of China, the People's Bank of China will pay the bank a very high interest rate, usually more than double our deposit information. Assuming we exist in the bank interest is 2%, then they exist in the People's Bank of China interest is 4%.