Did you ever imagine that you are able to profit from a bank?
For most of your adult life, you have been familiar with banks in one way or another. Think about how much money you have given to your bank, whether it’s from depositing your cash to having a secure place for your money, paying fees, or paying off your loans.
Even the traditional way of collecting interests won’t be enough to make a difference for you. The reason is the average APY for a bank savings account is only 0.17%. You won’t find anything better because even the best banks only offer a measly 1%. For a lot of people, more is needed to make a huge difference.
Yet, have you ever thought about it the other way around? What if I told you there were ways to make money using a bank instead of giving it to them for a change?
So the question here is, how can you profit from a bank? In the section below, I have listed lucrative and exciting ways to make money using a bank that you might want to consider.
Ways To Profit From a Bank
1. Collect Signup Bonuses
From time to time, you will be able to see plenty of offers from many banks where they will offer you a signing bonus for opening a checking account. The promotions usually come and go quickly, so be sure to keep an eye out. These bonuses can range from $125-$400. It’s not a lot but it is a simple way to earn some extra cash.
To find these signup bonus deals, make sure you check your local banks in your city to see if you meet all the requirements for one.
2. Invest in Bank Stocks
Another way to profit from a bank is by owning a bank, which is only possible if you are incredibly wealthy. If you want to be a bank owner but don’t have the funds, you can still do so by buying bank stocks.
For example, one of the biggest banks in Australia, The Commonwealth Bank, has seen massive growth in stocks. From the start of the company up until 2024, it has seen a massive spike of almost 400%, which is the highest of any bank in Australia. Think of how much money you would have made if you invested five years ago. I’ll give you the answer, a lot. It’s always possible to take advantage of investing in bank stocks.
If you are new to trading and investing in the market, here is an incredible article that talks about a platform that is great for new and experienced traders, Quantum Espace. It can help guide you into the market and the online trading world.
3. Collect Teaser-Rate Interest
Even though I mentioned previously that interest rates on bank savings accounts are awful, with only averaging 0.17%, there is another option you want to hear about.
In some instances, some banks offer something called a “teaser rate” for opening a new bank account. This is another solid way to profit from a bank. Some banks can offer up to 1.4% on a money market account and a checking account. This number is eight times the national average. However, after six months, your account will go back to the average interest rate amount.
In this instance, what you can do to combat this and continue to have a higher interest rate is to jump from bank to bank and open a new account once your high-interest rate drops back down again.
4. Collect loans to loan to others.
One thing some people do is become a bank themselves. A way banks make money is from loans. You ask for a loan; the bank gives you the amount. You then pay a set amount for the length you agreed on, but you also pay an extra interest to the bank in return. You, however, have to meet specific requirements to take out these loans, so not everyone can get a loan.
So what can you do with this information? You can take out a loan from the bank and loan it to the people who need the money but still need to meet the requirements of the bank. You can then ask for a higher interest rate in return, pay the bank back over time, and still be in profit! Keep in mind that these people are at high risk of not returning your money; there is a reason why they did not meet the bank’s original requirements. So my advice is to take caution and do your best to minimize this risk by creating a contract or some sort of lawful agreement with them.
In conclusion
Don’t let you and your bank have a one-way relationship. Relationships take two to tango, so make it that way. Take these advantages from the bank, and do your best to make a pretty penny from it. These solutions are probably the most standard ways to profit from a bank. You may find other solutions online, but these ways are more non-traditional.
If you are not a fan of the way traditional banks operate, there are always alternatives. Feel free to check out this article on the pros and cons of using traditional banks and why people are ditching this option for different alternatives.