Student Loan Research Paper

510 Words2 Pages

How does someone take a loan? How do the banks make money? What does it mean when you take out a student loan? What are the details on depositing money? Banking is a very important resource to us as Americans in many different ways.
Taking out a loan can be very complex at times. Loans are usually at fixed terms at a fixed rate. While banks will make loans with variable or adjustable interest rates and borrowers can often repay loans early, with little or no penalty. They usually don’t like doing it that way because they make no money if you repay your loan early, because they make interest off your loan that you take out. Just like a credit card, you use your credit card for a lot of money and you pay that credit card off that month you aren’t losing any money because there is no interest on it. The banking isn’t winning nor gaining anything. …show more content…

That’s money that account holders entrust in there bank to keep for their future transactions. Deposits are generally referred to as core deposits; these are typically the checking and savings accounts that so many people currently have. Most of the time they are short term deposits. The customer reserves the right to withdraw all his/her money out of their account at any given time at any given moment. They are also insured up to 250,000 dollars. Interest rates are very low to when you’re making deposits. Making a deposit should be an easy process. You just go to your bank and tell them you want to deposit however much money you want to whichever account you

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