How Do Banks Make Money in 2021

We know nothing in this world is free. So how do banks make money on  free checking and savings accounts. 


Banks make money when they loan money. Interest adds up on large loans over time.

Credit cards

Not specifically identified as a loan, banks make money from interest they charge on credit cards. Interest rates up to 21% bring in a lot of money for banks.


Some banks charge fees when a debit or credit card is used to make a purchase at a retail store. This fee is called an interchange fee.


Investment banks make money by providing financial advice, tax advice, corporate bonds/loans, and brokering shares, products, and currencies.

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