how do banks work?

  How do banks work?

Introduction How do banks work?

Have you ever wanted to know what a bank is? Banks have been all around the world for thousands of years but do you know what they can do? They give you money and will give 2 percent of your money and that’s called interest. The bank borrows money from you, they agree to make a payment so you can get more money. Oh and by the way I didn’t tell you about a bank account. A bank account is when you keep the money. The bank keeps the money in a vault so nobody can steal it, a vault has a lock to protect it from getting stolen. When you get money from the bank the bank gives your money to somebody else and there’s this card that you can spend on because it’s saved in your bank account.

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Sometimes the bank pays you money and 2 percent interest so you get more of the money you're getting, you can deposit money in your bank account, after that the bank will lend money to you, piggy banks can’t fit all your money that’ why there's a bank account a credit card needs a pin number up to 4 because if somebody steals it they will be able to spend anything. There are different kinds of banks in NZ (Anz, Asb,Bnz, Westpac and TSB).

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Money is very important because if you didn’t you wouldn’t have food, it has been over a thousand years even in the 1900s, for example, you want $100 and you get $102 because of the 2 percent interest.

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You get money from jobs and helping your parents almost every day, I get five dollars because I help my mum and dad do things, maybe you should help your parents so you can earn money to buy things.

         

Conclusion 

Now you know how banks work I hope you do help your parents and earn money for yourself