How do banks make money?

The profitability of banks can be roughly divided into two categories, one is spread income and the other is non-spread income. The so-called spread income refers to the difference between loan interest income and deposit interest expenditure. This profit-making method occupies a considerable proportion in China's banking industry and is the most important profit-making method in China.

Generally speaking, that is to say, banks first attract a large number of customers to deposit at bank outlets, and provide corresponding interest when customers deposit. Then use the customer's money in the bank as his own capital, lend it to others at a higher interest rate, and make money through these people. To put it bluntly, banks earn the difference between deposit interest and loan interest.

How banks make profits;

1. spread is easy to understand, and we don't use the technical term "deposit-loan spread" to express it. Considering the daily life of ordinary people, the one-year fixed interest rate of lump-sum deposit and lump-sum withdrawal is around 2%, which varies from bank to bank, but banks lend borrowers about 5% a year, and the difference of about 3% is one of the ways for banks to make profits.

2. The income from intermediary business is profitable. The so-called intermediary business refers to the business charges for work transactions and services between us and banks. For example, many of us have experienced small account fees, annual account fees and inter-bank inquiry and transfer fees, and such income is generally the handling fees, settlement fees and consulting fees charged by banks.

3. Credit card business income, although there are various credit cards at present, it has to be said that the credit card penetration rate is getting higher and higher. First, the income from card issuing business includes: annual fee for the first year, business card printing fee (replacement card), fast card issuing fee and other card issuing income; Second, the revolving credit business!