The Investor SA

What does the bank do with my money and why do they charge a fee?

After accepting a deposit the bank provides loans to the value of deposits received. They charge the borrowers interest, which belongs to both you and the bank. But today banks also provide a wide range of services to clients. The administration of bank accounts is expensive. Banks charge fees to handle these administration costs. Banks also provide a safe place for your funds, and pay you interest. The service is usually worth the small fee charged, but you should always compare bank fees to ensure that you are paying competitive rates at your bank. If not, you should change banks. Also, at all times you are a customer of your bank and you should feel comfortable about approaching your financial establishment for any explanation about fees and administration.