How do Banks Work?

How do Banks Work?

Intro

Banks have been around for thousands of years, they are more than a piggy bank, that keep your money safe. In fact, the first bank was in 1401. This is a safe place to store lots of people's money. The Banks job is to help people by lending others money and borrowing their money. Banks brings benefits to many people whether its billions of bucks or a small bit of money.

Paragraph 1( Putting your money in your account.

When you open your bank account you deposit money. This, In other words, you put money like coins and notes into your bank account. After a year the bank makes payment to you letting them use your money. This is called interest.

Paragraph 2 ( Lending money to you)

 For instance, you deposit $ 200 from your chores or gift. Then the bank will pay 2% interest. In no time your money in your savings account will grow. You might ask why does the bank give you interest.

Paragraph 3 ( What does the bank do with your money)

 For example, If the bank lends your money to a woman who wants to buy a brand new house. After a year the woman has to pay the amount of money she borrowed and extra money. The bank pays you back the money but also pays some of the extra money that the woman gave. The remaining money is kept in the bank as profit. Profit is when you gain something. This is how banks conduct business.

Conclusion

Banks are reliable intuitions that manage millions and billions of dollars. They make everyday lives more convenient and safe. Without banks, most people won’t be able to borrow to purchase everyday necessities. Banks make sure your money is safe and secure for the future..