from the FAQ (https://www.banksimple.com/faq/ https://www.banksimple.com/faq/) > If you don’t charge hidden fees, how do you make money? We make money from two

from the FAQ (https://www.banksimple.com/faq/ https://www.banksimple.com/faq/) > If you don’t charge hidden fees, how do you make money? We make money from two sources: interchange and interest margin. Interest margin is the revenue earned from lending, less what they pay on deposits. For example a bank may charge a customer 12% to borrow money, but pay 5% interest on a savings account. The difference, less any defaults on the loan, is revenue to the bank. Interchange is a small revenue source that card issuing banks earn whenever that card is used at a store. Typically banks earn less than 1% for each time the card is used to make a purchase. These are both great revenue streams, but banks got greedy and started charging additional fees to bolster their revenue. Without hundreds or thousands of branches, our operation is low cost, so we don’t need to rely on extraneous fee revenue.