How do banks work?

How do banks work

Banks, What are banks? Banks are big places to keep your money safe. For thousands of years, banks have been around providing a place for people to keep their money safe. Banks are much more safe and better than your run-of-the-mill piggy banks. Banks also bring big amounts of money to you.

P1

What happens to your money when you set up an account? Once you have set up an account your money is stored in a vault, a place to keep your money safe. Your money is connected to your credit card or your debit card. You can also use your Electronic Fund Transfer at Point Of Sale. In other words your EFTPOS card. You may use those cards to purchase items or pay off your bills.

P2

How can you make money by setting up a bank account? There are two ways to make money if you have a bank account. One you could gain interest, two the bank lends your money to someone else. For example, you put $100 in your bank account and the bank lends your money to someone else who needs $100 more to have enough money to pay for his college fee. After he uses your money he needs to pay the $100 back. With an extra 70%. The bank keeps 50% and you get your 100 back and the other 20%. That’s how banks and yourself make a profit (money)

P3

Why do banks do all this? Banks do this to help others in need of money and give interest to people who have bank accounts. They lend money, give interest, and make money themselves by taking 50% of the lent money back. This is called the banking system. It's when you make money by gaining interest, the bank makes money by taking the extra 50% from the lent money when it takes it back, and others in need of money for say school fees can count on the bank to lend the money needed.

P4

Why you should get a bank account? You should get a bank account because 1. It is much safer than a piggy bank and your siblings cant pinch your money 2. You could earn insane amounts of interest immediately. 3. Lastly, Banks bring big benefits to you. Big banks do business big-time. So if you could get your money in a bank you already know how good it’s gonna be.