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How Banks Make Money

Banks loan money to customers and charge interest, but there's more to the story.

By Matthew Frankel, CFPUpdated Jun 6, 2025 at 10:14 PM | Fact-checked by Frank Bass

Key Points

  • Banks earn via services like loans and managing corporate deals.
  • Charges include overdraft fees and loan origination fees.
  • Net interest margin is key to banks' earnings from loans.

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