How do commercial banks make money?

Commercial banks offer basic banking services, including deposit accounts and loans, to consumers and businesses. These financial institutions make money from a variety of fees and by earning interest income from loans. Commercial banks have traditionally been located in physical locations, but a growing number now operate exclusively online.

Is a community bank a commercial bank?

Commercial banks are for-profit institutions that accept deposits, make loans, safeguard assets, and work with many different types of clients, including the general public and businesses. However, if your account is with a community bank or credit union, it probably would not be a commercial bank.

What is a commercial bank?

The term commercial bank refers to a financial institution that accepts deposits and offers different banking and financial products. Commercial banks provide these services to people and businesses. Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans.