How does the bank benefit from zero interest accounts

Expert Solution

Well, Interest is one of the income of the banks but there are other income of the banks apart from interest.

As much as the zero interest policy attracts customers, there are other incidental charges that a customer has to pay along with opening of the account.

This include various charges such as:

Accounts fees
ATM fees
Penalty charges if incurred
commision
Application fees

Also, this increases the customer base of the bank and help in gaining more customers as well as more accounts.

jeff jeffy answered 2 years ago

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