Banks make so much money because they can create money, effectively out of nothing, by lending. Every single pound in your bank account was created by a bank. Banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own.

Why Do Banks Make So Much Money?

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Welcome to Residence Inn Woburn, I am Dave Peter. Some financial planners assess every aspect of your financial life.
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