How Banks Work

Banks play very important role in every country of the world and they work in their specific way. They have created their own terms and conditions which every one have to follow and they have created very strict rules. Let’s walk through it so that you can understand that how banks works in the cities and every country of the world. Banks make money by simply moving money around you have to keep in your mind that we are moving towards services which are provided by the banks.

Banks have many services which every person can use easily and many of their First service is SAVING ACCOUNTS : from this service the most of the people become very familiar to save their money because this service will provide you to keep your money safe in the very easy way you have to just go to the bank and ask them for the opening of your saving account then the accounts employee will tell you your further process and he or she will fill your accounts form telling you the each and every bit of that. In this way you can save your money very easily and when ever if you need money you just go take your money the bank will provide you at any time and you will also earn the small amount of the money by saving your money there if you save it for the long time you can earn more and if you save it for short time you will earns less.

The other service by which banks works is CHECKING ACCOUNT : this is no different than the saving account but now this time you will lend your money to the bank but most of the people think that the money they are lending to the bank than the bank use that money for giving loans to other people for cars , automobiles , and many of the other things which is listened in the banks.

The banks works by making money we are going to tell you how they make money in easy way. The money which you loan to the bank from that bank earn the strong return and from that strong return they give a small amount of return from the part of the that profit in the form of interest. This how banks works and they make money.