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28-06-2019, 10:14 AM
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How banks make money

One reason is by hanging on to people's money .
If you set up a direct debit it sometimes takes 7-10 days to go through 'processing .'
So if the money goes out on the 1st of the month and takes " 7 working days ' to go to the payee where is it ?

It with the bank making money for them .
We are in the age of the intenet and electronic communications .Things can be done at the touch of of a screen .

Unless of course they are sending out everything by pigeon .
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28-06-2019, 10:37 AM
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Re: How banks make money

From what i understand anything can be done straight away. bank as you say want to hold onto it and earn from it even on a daily basis. Big number come into play. If for example a bank has 10 million customers and they only make one penny a day from holding onto money from each customer they are still making thousands of pounds a day out of that 10 million customers.
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28-06-2019, 10:38 AM
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Re: How banks make money

Originally Posted by Muddy ->
One reason is by hanging on to people's money .
If you set up a direct debit it sometimes takes 7-10 days to go through 'processing .'
So if the money goes out on the 1st of the month and takes " 7 working days ' to go to the payee where is it ?

It with the bank making money for them .
We are in the age of the intenet and electronic communications .Things can be done at the touch of of a screen .

Unless of course they are sending out everything by pigeon .
Another thread maybe Muddy but lawyers use a similar
system also?

Regards Donkeyman!
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28-06-2019, 11:27 AM
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Re: How banks make money

Banks also make money, a lot of it, by preventing us having half-decent interest rates on our savings!

On semi-retiring some 13 years' ago now, I was getting reasonable interest rates on savings and investments. Then they crashed down to the paltry rates on offer now. Many are paying well below the bank base rate of 0.75%, one term account I had ended so the capital was put into a 'holding account' until I gave instructions as to which new account I wished to open, the interest rate on that was 0.01%, load of thieves they are!

It's hardly worth the bother of having savings accounts but probably better to get something than absolutely nothing!
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28-06-2019, 12:09 PM
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Re: How banks make money

You will get 1.50 % with Virgin money
And there are others that will pay around that %
Don't keep your savings with the big banks .
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28-06-2019, 12:14 PM
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Re: How banks make money

Originally Posted by Muddy ->
You will get 1.50 % with Virgin money
Don't keep your savings with the big banks .
Yes, thanks Muddy I checked around and found Virgin Money and others. Mostly I invest through an Independent Financial Advisor I have used for some years now.

The Banks really are the biggest thieves when it comes to giving customers good interest rates. It also seems some building societies just don't want or need our money either so offer paltry rates
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28-06-2019, 12:55 PM
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Re: How banks make money

Originally Posted by Muddy ->
One reason is by hanging on to people's money.
Money is by and large a pure illusion. It is just a number in a computer screen, not actual cash. If you were to add up all the amounts in people's bank accounts and compare it wish all the cash in circulation and in vaults you would find the accounts massively (by many multiples) outweigh actual money.

Banks don't need to fanny around with tiny amounts of interest accrued via delayed transfers. Banks literally invent money out of thin air in a system called Fractional Reserve Banking.

It is a totally fraudulent system that they have been operating for many years and will ultimately result in financial crashes.

The banks lend money to people (your money) and charge them substantial interest. However this is a cumulative process and means that banks effectively just print money that never existed.

The banks HAVE to keep a small fraction of the money you deposit but it can be as low as 3% in some cases.

Let's suppose it's 10%

So, one day you deposit 10,000 in your bank

The bank keeps 1000 (10%) of that tucked away

The other 9000 it lends to borrowers at a lucrative interest rate

Those borrowers get that 9000 cash and it gets deposited in THEIR own bank account

Now THEIR bank does what your bank does. They keep 10% of it secure i.e. 900 and then loan out the rest to someone else i.e. 8100

And this goes on and on so from your original deposit of 10,000


You deposit 10,000, Your bank loans someone 9000
That person deposits 9000, Their bank loans someone 8100
That person deposits 8100, Their bank loans someone 7290
That person deposits 7290, Their bank loans someone 6561
That person deposits 6561, Their bank loans someone 5905
That person deposits 5905, Their bank loans someone 5314
That person deposits 5314, Their bank loans someone 4783

and so on. Already there is now 56,953 in people's bank accounts all from that original deposit of 10,000.

The money is literally being invented out of thin air and they print the bank notes to meet the demand as people withdraw their balances.

The banks are charging interest on all of this money being lent out even though it never really existed. That's interest being charged on fictional nonexistent money. Nice work if you can get it !!!

The problem with all of this is that it is perilous to the economy. With so much fictional money in bank account systems there is a huge danger that if everyone demanded their actual money at the same time, well the banks would have to close because that money does not exist. It isn't physically there as cash in a vault and it isn't necessarily backed by tangible assets. That's why in the past we have seen building socieites like Northern Rock and others get into trouble and unable to provide cash to its customers when they all demand their money.

When that happens the Central Bankers get involved and bail them out, or let them go bust.

Really the ability to actually print money, real cash, should lie with a country and its government and not with provate firms (i.e. fraudulent banksters). But this lucrative ability to print the cash has over 100s of years flipped back and forth between the banking cartels and goverments.

When the money printing is in the hands of the country, there is stability and a well managed economy. When the banksters have it, they greedily run these fraudulent systems and send economies crashing.

If the US is to survive, it needs to wrest back control of the money printing from the Federal Reserve.
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28-06-2019, 01:08 PM
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Re: How banks make money

I would encourage people to read the fascinating history here of how the banksters came into being and how throughout history, kings and queens have wrested back control and then lost it again over and over.

https://www.bibliotecapleyades.net/s...lbanking26.htm
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29-06-2019, 07:57 PM
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Re: How banks make money

Originally Posted by Realist ->
I would encourage people to read the fascinating history here of how the banksters came into being and how throughout history, kings and queens have wrested back control and then lost it again over and over.

https://www.bibliotecapleyades.net/s...lbanking26.htm
Very interesting Realist, you have put all the contrivancies of
the banking industry nicely into a nutshell! even l could
undersand it! Why do these rogues get to reward themselves
so well for something so simple?
Concerning the low interest rates currently being paid in uk,
isnt that to allow government to borrow cheaply?

Regards Donkeyman!
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29-06-2019, 08:09 PM
10

Re: How banks make money

We shouldn't complain, it's nice work if you can get it.
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