How do banks make their money?
Apart from unlawful penalty charges, how do banks make their
huge profits? Is there someone 'on the inside' who can tell us.
I know there is a system of 'overnight lending/borrowing' where they charge very high rates of
interest to institutions (including government departments) borrowing very large sums of money for a short period.
How else do they profit from our cash?
Another banking scam I have just discovered:- You pay a bill by standing order and the amount is taken from your account on the due date but does not appear in the recipients account for anything up to a week.
My local credit union told me about this - one of their clients gets charged up to 7 days extra
interest on his loan because his bank delays payment to them although it goes from his account on the due date. The rich soaking the poor again?
In Sweden the Government told the banks to clear funds within hours otherwise they would legislate - the banks caved in. Unfortunately we do not have a government that is prepared to control the banks so we have to wait up to a week to 'clear' cheques that are cleared electronically within minutes. This pot of your cash is lent to others at high rates of
interest thereby swelling the banks' already overflowing coffers!
Can anyone help?
How banks make their money. 
