The bank is a place where we keep our money for future use, its more like a safe place where we can access our money whenever and wherever. Every business has one primary purpose, which is to make profits. How do banks make their profits? Someone once told me banks usually make various kinds and types of investments with our capital to generate profit for themselves.
Do banks also invest with our capital?
- Thread starter eldavis
- Start date
Yes, we put money in banks for interests. Banks make profit by using our money to make various investment. They also earn much higher interest lending loans to individuals and companies.
One thing for sure is that banks also do some sort of investments too as that is where they can also gain some more profits especially commercial private banks as there is not a way they will make the profit that they are targeting without putting in some cash for investments too as they are being invested upon too by the customers who put their money and trust into the banks on a daily basis.
Yes I invested in a private bank and they pay a lot of interest to their customers compared to public banks. I asked him what is the reason? He said we invest with your money and you are our partner Not customer
