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This question is a bit of a brain puzzler, and there does not seem to be a very clear answer to this Question Resources and Information. a quick glance, I would say investments would pay more money to the bank than fees would, however, let's examine the facts and that way, one would come to their own conclusion, as it is also very obvious that fees bringing tremendous amounts of money to the bank. So we will start by defining like the bank, fees, and investments, and glean as much information as we could as we navigate the question and answer. Let's do this:BankDescriptionA bank is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed either directly or indirectly through capital markets. Due to their importance in the financial stability of a country, banks are highly regulated in most countries.How Banks WorkBY LEE ANN OBRINGERAccording to Britannica.com, a bank is:an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans and derive a profit from the difference in the interest rates paid and charged, respectively.Banks are critical to our economy. The primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college...When you deposit your money in the bank, your money goes into a big pool of money along with everyone else's, and your account is credited with the amount of your deposit. When you write checks or make withdrawals, that amount is deducted from your account balance. The interest you earn on your balance is also added to your account.Banks create money in the economy by making loans. The amount of money that banks can lend is directly affected by the reserve requirement set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent of a bank's total deposits. This amount can be held either in cash on hand or in the bank's reserve account with the Fed. To see how this affects the economy, think about it like this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent, the bank can then lend out $90. That $90 goes back into the economy, purchasing goods or services, and usually ends up deposited in another bank. That bank can then lend out $81 of that $90 deposit, and that $81 goes into the economy to purchase goods or services and ultimately is deposited into another bank that proceeds to lend out a percentage of it.In this way, money grows and flows throughout the community in a much greater amount than physically exists. That $100 makes a much larger ripple in the economy than you may realize!What do banks charge fees for?To make a profit and pay operating expenses, banks typically charge for the services they provide. When a bank lends you money, it charges interest on the loan. When you open a deposit account (checking or savings) there are fees for that as well. Even fee-free checking and savings accounts have some fees.Bank FeesREVIEWED BY WILL KENTONDEFINITION of Bank FeesBank fees are nominal fees for a variety of account set-up and maintenance, and minor transactional services for retail and business customers. Fees can be one-time, ongoing or related to penalties.BREAKING DOWN Bank FeesBanks fees seemingly lurk everywhere. There is a comprehensive disclosure of the menu of fees on banks' websites and in pamphlets with fine print. Customers must carefully read the disclosures to avoid surprises. Certain fees apply to all customers across the board, while others may be waived under certain conditions. While competition is a natural regulator of where a bank may apply fees and how much it thinks it can get away with, government authorities such as the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) stand by to field complaints and concerns from the public about fee-charging practices by banks.Sample List of Bank FeesWells Fargo charges retail customers fees for ATM transactions (with some exceptions), cashier's checks, money orders, overdrafts, bounced checks, overdraft protection, stop payment requests, wire transfers, safety deposit boxes, minimum account balance requirements, and others. Fees for merchant, payroll, and bill payment services apply for small businesses, while treasury management and corporate trust services offered by a bank to larger businesses carry fees. Also, fees for establishing and maintaining loans or lines of credit, the bread-and-butter of all banks, apply to all.Importance of Bank Fees to ProfitabilityThe primary source of revenue for a bank is net interest income, but a material portion of total revenue comes from bank fees. In 2017, fee income (booked under "noninterest income") for Wells Fargo accounted for approximately 35% of aggregate revenue. An individual fee may be nominal but they add up nicely for a bank. When the net interest margin for a bank is squeezed in a low-interest rate environment, bank fees provide a measure of stability to bank earnings.Investments:According to Wikipedia, investments are:To invest is to allocate money in the expectation of some benefit in the future.In finance, the benefit of an investment is called a return. The return may consist of a gain (or loss) realized from the sale of property or an investment, unrealized capital appreciation (or depreciation), or investment income such as dividends, interest, rental income, etc., or a combination of capital gain and income. The return may also include currency gains or losses due to changes in foreign currency exchange rates.Investors generally expect higher returns from riskier investments. When we make a low-risk investment, the return is also generally low.Investors, particularly novices, are often advised to adopt a particular investment strategy and diversify their portfolio. Diversification has the statistical effect of reducing overall risk.An investor may bear a risk of loss of some or all of their capital invested. Investment differs from arbitrage, in which profit is generated without investing capital or bearing risk.Savings bear the (normally remote) risk that the financial provider may default.Foreign currency savings also bear foreign exchange risk: if the currency of a savings account differs from the account holder's home currency, then there is the risk that the exchange rate between the two currencies will move unfavorably, so that the value of the savings account decreases, measured in the account holder's home currency.In contrast with savings, investments tend to carry more risk, in the form of both a wider variety of risk factors and a greater level of uncertaintyBelow Finra describes the types of investments:Types of InvestmentsThink of the various types of investments as tools that can help you achieve your financial goals. Each broad investment type—from bank products to stocks and bonds—has its own general set of features, risk factors and ways in which they can be used by investors.Learn more about the various types of investments below.StocksWhen you buy shares of a company’s stock, you own a piece of that company. Stocks come in a wide variety, and they often are described based on the company’s size, type, performance during market cycles and potential for short- and long-term growth. Learn more about your choices—from penny-stocks to large caps and more.BondsA bond is a loan an investor makes to an organization in exchange for interest payments over a specified term plus repayment of principal at the bond’s maturity date. Learn how corporate, muni, agency, Treasury and other types of bonds work.Investment FundsFunds—such as mutual funds, closed-end funds and exchange-traded funds—pool money from many investors and invest it according to a specific investment strategy. Funds can offer the diversification, professional management and a wide variety of investment strategies and styles. But not all funds are the same. Understand how they work, and research fund fees and expenses.Bank ProductsBanks and credit unions can provide a safe and convenient way to accumulate savings—and some banks offer services that can help you manage your money. Checking and savings accounts offer liquidity and flexibility. Find out more about these and other Bank productsOptionsOptions are contracts that give the purchaser the right, but not the obligation, to buy or sell a security, such as a stock or exchange-traded fund, at a fixed price within a specific period of time. It pays to learn about different types of options, trading strategies and the risks involved.AnnuitiesAn annuity is a contract between you and an insurance company, in which the company promises to make periodic payments, either starting immediately—called an immediate annuity—or at some future time—a deferred annuity. Learn about the different types of annuitiesRetirementNumerous types of investments come into play when saving for retirement and managing income once you retire. For saving, tax-advantaged retirement options such as a 401(k) or an IRA can be a smart choice. Managing retirement income may require moving out of certain investments and into ones that are better suited to a retirement lifestyle.Saving for EducationFunding education begins with savings. Learn smart ways to save, including 529 Education Savings Plans and Education Savings Accounts. We’ll help you navigate your savings options.Alternative and Complex ProductsThese products include notes with principal protection and high-yield bonds that have lower credit ratings and a higher risk of default than traditional investments but offer more attractive rates of return. Learn about their features, risks and potential advantages.Initial Coin Offerings and CryptocurrenciesThese are speculative investments that come with significant uncertainty and many risks. Before you consider an investment in ICOs or cryptocurrencies, learn more.Commodity FuturesCommodity futures contracts are agreements to buy or sell a specific quantity of a commodity at a specified price on a particular date in the future. Commodities include metals, oil, grains, and animal products, as well as financial instruments and currencies. With limited exceptions, trading in futures contracts must be executed on the floor of a commodity exchange.Security FuturesFederal regulations permit trading in futures contracts on single stocks, also known as single stock futures, and certain security indices. Learn more about security futures, how they differ from stock options and the risks they can pose.InsuranceLife insurance products come in various forms, including term life, whole life, and universal life policies. There also are variations on these—variable life insurance and variable universal life—which are considered securities. See how insurance products may fit into an overall financial plan.Ever wonder how banks make their money? They can't be offering to store your money for free? You're right; here's how banks earn money.How do banks make money?Yes, banks make a lot of money banks from charging borrowers interest, but the fees banks change are just as lucrative.Account fees. Some typical financial products that charge fees are checking accounts, investment accounts, and credit cards. These fees are said to be for “maintenances purposes” even though maintaining these accounts costs banks relatively little.ATM fees. There will be times when you can’t find your bank’s ATM and you must settle for another ATM just to get some cash. Well, that’s probably going to cost you $3. Such situations happen all the time and just mean more money for banks.Penalty charges. Banks love to slap on a penalty fee for something a customer’s mishaps. It could a credit card payment that you sent in at 5:05 PM. It could be a check written for an amount that was one penny over what you had in your checking account. Whatever it may be, expect to pay a late fee or a notorious overdraft fee or between $25 and $40. It sucks for customers, but the banks are having a blast.Commissions. Most banks will have investment divisions that often function as full-service brokerages. Of course, their commission fees for making trades are higher than most discount brokers.Application fees. Whenever a prospective borrower applies for a loan (especially a home loan) many banks charge a loan origination or application fee. And, they can take the liberty of including this fee amount into the principal of your loan—which means you’ll pay interest on it too! (So if your loan application fee is $100 and your bankrolls it into a 30-year mortgage at five percent APR, you’ll pay $94.40 in interest just on the $100 fee).Banks are just like other businesses. Their product just happens to be money. Other businesses sell widgets or services; banks sell money -- in the form of loans, certificates of deposit (CDs) and other financial products. They make money on the interest they charge on loans because that interest is higher than the interest they pay on depositors' accounts.The interest rate a bank charges its borrowers depends on both the number of people who want to borrow and the amount of money the bank has available to lend. As we mentioned in the previous section, the amount available to lend also depends upon the reserve requirement the Federal Reserve Board has set. At the same time, it may also be affected by the fund's rate, which is the interest rate that banks charge each other for short-term loans to meet their reserve requirements. Check out How the Fed Works for more on how the Fed influences the economy.Loaning money is also inherently risky. A bank never really knows if it'll get that money back. Therefore, the riskier the loan the higher the interest rate the bank charges. While paying interest may not seem to be a great financial move in some respects, it really is a small price to pay for using someone else's money. Imagine having to save all of the money you needed in order to buy a house. We wouldn't be able to buy houses until we retired!Banks also charge fees for services like checking, ATM access, and overdraft protection. Loans have their own set of fees that go along with them. Another source of income for banks is investments and securities.How investment banks make their money. ... They make most of their money by charging a higher rate of interest to borrowers than they pay to savers. Investment banks, on the other hand, make their money by selling services to customers such as companies, governments and investment funds (fund managers and hedge fundsHow Investment Banks Make Money (JPM, GS)BY SEAN ROSSUpdated Sep 22, 2016Investment banks are designed to finance or facilitate trade and investment on a large scale. But that's a simplistic view of how investment banks make money. There's a lot more to what they really do. When they work properly, these services make markets more liquid, reduce uncertainty and get rid of inefficiencies by smoothing out spreads.Brokerage and Underwriting ServicesLike traditional intermediaries, investment banks connect buyers and sellers in different markets. For this service, they charge a commission on successful trades. The trades range from megadeals to simple stock trades.Investment banks also perform underwriting services for capital raises. For example, a bank might buy stock in an initial public offering (IPO), market the shares to investors and then sell the shares for a profit. This works like an arbitrage opportunity. There is a risk that the bank will be unable to sell the shares for a higher price, so the investment bank might lose money on the trade. To combat this risk, some investment banks charge a flat fee for the underwriting process.Mergers and AcquisitionsInvestment banks charge fees to act as advisors for spinoffs and mergers and acquisitions (M&A). In a spinoff, the target company sells a piece of its operation to improve efficiency or inject cash flow. Acquisitions occur whenever one company buys another company. Mergers take place when two companies combine to form one entity. These are often extremely complicated deals and require a lot of legal and financial help, especially for companies unfamiliar with the process.Creating Collateralized ProductsInvestment banks might take lots of smaller loans, such as mortgages, and then package those into one tradeable security. The concept is somewhat similar to a bond mutual fund, except the instrument is a collection of smaller debt obligations rather than corporate and government bonds. Investment banks have to purchase the loans to package and sell them, so they profit by buying cheap and selling at higher prices on the market.Proprietary TradingIn the proprietary trading process, the investment bank deploys its own capital into the financial markets. Company traders look for arbitrage opportunities or other strong, shorter-term investments. Traders who guess correctly can make a lot of money very quickly. Alternatively, poor traders tend to lose money and risk losing their jobs. Proprietary trading has been much less prevalent since the financial crisis of 2008 and 2009.Dark PoolsSuppose an institutional investor wants to sell millions of shares, a value that's large enough to impact markets right away. However, the market might see a big order come through. This leaves an opportunity for an aggressive trader with high-speed technology to front-run the sale in an attempt to profit from the coming move.Investment banks established dark pools to attract institutional sellers to a secretive and anonymous market to prevent front-running. The bank charges a fee for the service. Dark pools are very controversial and came under added scrutiny after Michael Lewis authored "Flash Boys," which shed light on shady dark-pool activity.SwapsInvestment bankers sometimes make money through swaps. Swaps create profit opportunities through a complicated form of arbitrage, where the investment bank brokers a deal between two parties that are trading their respective cash flows. The most common swaps occur whenever two parties realize they might mutually benefit from a change in a benchmark, such as interest rates or exchange rates.Market MakingMarket making works best when the bank has a large inventory of stock with high trade frequency. The bank can quote a buy price and sell price and earn the small difference between the two prices, also known as the bid-ask spread.Investment ResearchMajor investment banks can also sell direct research to financial specialists. Money managers often purchase research from large institutions, such as JPMorgan Chase & Co. (NYSE: JPM) and Goldman Sachs Group Inc. (NYSE: GS), to make better investing decisions.Asset ManagementIn other cases, investment banks directly serve as asset managers to large clients. The bank might have internal fund departments, including internal hedge funds, which often come with attractive fee structures. Asset management can be quite lucrative because the client portfolios are large.Investment banks also partner with or create venture capital or private equity funds to raise money and invest in private assets. These are the fix-and-flip experts in the business governance world. The idea is to buy a promising target company, often with a lot of leverage, and then resell or take the company public after it becomes more valuable.As I said at the beginning, it is easy to look at the big investments that banks engage in and be tempted to say that investments would make much more money for banks, but also remember that investments are also very risky business, while fees are deducted from your account regardless to your say-so and at the banks convenience. So there you are, there’s a lot of information to absorb, hopes that it helps.