Have you ever wondered how banks make money?
Banks are in the business of making money, that much isn't a secret. But how do they do it? And how can some banks offer much higher interest rates on savings and checking accounts than their competitors, or on the flip side, offer much lower interest rates for mortgages . auto loans, and other financial products and services?
This is actually a fairly detailed set of questions, and answering it will take 2 articles. We'll cover part one today how banks make money, and part two tomorrow how can banks make money by offering higher interest rates and better rewards programs? The answers might surprise you!
