Originally Posted by
Macjet
They only make money if you borrow from them. Otherwise, they pay you. There is no fee for checking or savings and the profits are distributed by to me for my checking and savings balances.
For any bank or credit union, they make money on your checking and savings. They figure a certain percent and use it to make loans. Your checking account may fluctuate, but taken over thousand of accounts, there is a certain amount they can count on as assets on deposit.
Say they pay you 0.25% per year on your bank account deposit, and it costs them 1.00% in administration fees. If they can loan the money at 2.25%, they make 2.25-1.00-0.25 = 1.00% on the loans, profit.