Banking

Definition of Bank: A bank is a financial institution that acts as a payment agent for customers, and borrows and lends money. Banking is the verb of bank.

The benefit of banking:

Safety - Certified and regulated banks provide safety for your money. Hence, you can be assured that your money does not get stolen and loss, as it is in safe hands.

The areas in banking include:

1. Saving:

Banks in the modern times have special schemes to help you save money. This is very useful as many people nowadays, with the brought about of the credit card etc. Many people spend more then what they can actually earn. Hence, such saving schemes are actually very useful in helping one manage their finances and save money monthly.

2.Checks:

Banks provide free checkbooks for you if you are a customer of a particular bank. Checks are useful because of their portability. Instead of bringing large amounts of cash with you, checks allow one to give any amount of money to another without actually through physical transaction. Hence, it enhances security.

3. ATM Usage:

With a Bank account, you can use ATM machines. These ATM machines allow you to draw money when you run out of cash instead of going directly to a bank. An ATM machine also provides various services e.g. paying of certain bills etc. Hence, having a bank account with a bank is very useful.

4. Loans:

Imagine yourself having no where to turn to, especially when you in a dire financial state, banks allow you to take loans from a bank. By providing valid documentations, securing a minimal loan is not a problem.

5. Interests:

Instead of leaving your cash at home, why not put it in a bank? By depositing money into the bank, the bank will give you interest commensurate to how much deposit you put in. The more money you put in, the more interest you actually get in terms of percentage of interest. This slowly, can grow your financial wealth.