Discover and read the best of Twitter Threads about #netinterestincome
Most recents (1)
How do banks make money?
A thread🧵⬇️
A thread🧵⬇️
1/
Banks pay interest on money that depositors keep with them and charge interest on loans given to borrowers.
The difference is theirs to keep.
Banks pay interest on money that depositors keep with them and charge interest on loans given to borrowers.
The difference is theirs to keep.
2/
Here's how⬇️
Suppose you deposited Rs 10,000 with ABC bank. The bank agreed to pay you 8% interest per annum.
Next, the bank will take your Rs 10,000 and lend it to someone else and charge them an interest rate of 10%.
Here's how⬇️
Suppose you deposited Rs 10,000 with ABC bank. The bank agreed to pay you 8% interest per annum.
Next, the bank will take your Rs 10,000 and lend it to someone else and charge them an interest rate of 10%.
