Banking

• Banks receive money from people as deposits and lend it to others as loans. They make money by charging borrowers more interest than they pay depositors.

• Having a bank account has several advantages. It provides a safe place to keep your money, offers easy access to your funds through different channels, allows for convenient payment options, provides tools to manage your money effectively, and offers the potential to earn interest on your deposited funds.

• There are two main types of financial institutions: Banks and Credit Unions. Banks offer a wide range of services, have many branches, and use advanced technology. Credit unions often have lower fees, competitive interest rates, and a more personalized approach to customer service. However, they may have fewer services and branches available.

• Being part of the banking system is considered crucial for maintaining a healthy financial position as a consumer. It provides access to various financial services and helps individuals manage their money effectively.