Banks are places that store money for people like you and me. Banks also lend money to people and businesses. When we put our money in a bank for safe keeping, the bank actually uses our money to make loans to other people. In exchange for using our money to make loans, the bank gives us a small amount of money called interest. When banks lend money, the person or company taking out the loan must pay the bank interest on the money.
Banks always earn more interest on the loans than they pay to the people who have savings accounts.
This is one important way that banks make money. Making money is something most people and companies need to do to survive in today's world. Money itself is neutral . In other words, the money itself is neither good nor bad. There is nothing wrong with making money.