Monday, August 10, 2020

What is a bank?

 What is a bank?   


Introduction:                                                                           

A bank is a safe place where you can store lots of money and you can collect it back when you need it. Banks have been around for many centuries and have been trusted ever since it was built. The purpose of a bank is to make sure your money isn't stolen and to make sure it's safe. It's also great because you can get it back at any time you want.


The bank lends you money but after a while you must pay it back. It also gives you interest by money deposited on savings accounts to lend borrowers, when you open a bank account and deposit money into it, the bank will then give it to someone else . After a year the bank pays you for depositing money. This is called interest. You can exchange money, for example you can exchange a 20 dollar note for two 10 dollar notes. Then when you open an account you can insert money into your bank account. You can also give some of your money away to earn more money, there are many banks in New Zealand. For example ASB, BNZ and ANZ. 


When you borrow money from the bank you can get charged a fee. A fee is when you borrow money and you don't pay it back. You have to pay it back because the bank owns it and they just let you borrow money. At the end of the year the bank pays you 2% of the money back and the bank keeps 5% of it. 


The bank is important because if we didn't have a bank we wouldn’t have coins or notes. It is also a good place to put all your savings so it doesn't get stolen. Without banks no one would be able to purchase anything, in the old days there were no banks so people had to trade their own goods for different goods. A bank is just like your own piggy bank filled with notes and coins except the bank can hold up to billions of dollars. I hope you now know what a bank is. 



                                                                                                










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