How Banks Work: A Simple Guide To Banking Basics

Money is an important part of everyday life. People earn it, save it, spend it and sometimes borrow it when they need help paying for something big. Banks play a very important role in helping people manage their money safely and easily. They provide different services that allow individuals and businesses to save money, make payments, and plan for the future.

In this article, let’s explore information about banks and what you should know about them –

But before we start, let’s get to know what banks are.
A bank is a place where you can store or borrow money. If you want to store your money, banks will pay you extra money on top of your savings, which is called interest. If you borrow money, they will charge you a fee, which is also called interest.

There are many things that you can do in banks, and they are:

1. Open an account
2. Make a deposit or withdraw money
3. Take out a loan
4. Apply for a credit card & debit card
5. Pay bills
6. Transfer money
7. Foreign currency exchange
8. Overdraft
9. Discounting of bills
10. ATM services
11. Mobile / online banking

Now you might be thinking there is only one type of bank. Right? But no, there are many different types of banks. They can be broadly categorised into four different types:

1. Big banks / Investment banks: Barclays, Edelweiss, BNP Paribas and many more.
2. Local banks: Axis Bank, HDFC Bank, ICICI Bank, SBI and many more.
3. Credit unions / cooperative societies: The Bihar State Cooperative Bank, The Chandigarh State Cooperative Bank.
4. Online banks: Airtel Online Bank, Paytm Bank and many more.

After learning about the different types of banks, let’s know how to choose a bank:

1. First, check if the bank is close by.
2. Second, check if they have the products that you need.
3. Third, check if the bank has good customer service.

Finally, know about all the jobs in a local bank:

1. Bank manager
2. Teller / cashier
3. Branch manager
4. Customer service agent

This is everything you need to know about banks!

By Ivank Taneja, Class 7, Pathways World School, Aravalli, Gurgaon, Haryana

Have a story that is packed with imagination, and want to feature it? Email it to us at: info@thejuniorage.com

Subscribe to The Junior Age Newspaper – click here. Know more fun facts on The Junior Age’s YouTube!