How do banks make money on deposits and what strategies do they use to generate profit from customer funds?

Banks make money on deposits by lending out a portion of the funds at a higher interest rate than what they pay to depositors. They also invest in various financial instruments to generate additional income. Some strategies they use include offering loans, mortgages, credit cards, and investing in securities and other assets. By carefully managing their assets and liabilities, banks aim to maximize profits while ensuring the safety and security of customer funds.