ElI5: Why are US bank operating hours designed the way they are? It seems so illogical they are open short periods, only during peak “business” hours.
In: 8
Because their main customer is businesses.
You come into a bank once in a blue moon. They’re not opening up for you. They’re opening up for businesses that don’t want to keep tens of thousands of dollars on the premises, so they very regularly go to the bank.
Also, think where banks make their profit. It’s not from the masses working low paid jobs and keeping a small account at the bank. That kind of thing probably amounts to a rounding error, if it doesn’t actually lose them money.
Where banks make their money is in things like loans, mortgages and pension funds. The bank is open and available to the average Joe not because the bank really wants Joe to deposit his meager savings there, but because they’re betting on that when Joe needs a mortgage, it’ll be worth it.
So effectively, for most normal people the bank being open to you is mostly an advertisement so that later you’ll get your mortgage there. And when you need that, you’ll come at whatever hour it happens to be open.
Latest Answers