INTRODUCTION TO BANKING

Banking is an integral part of any financial system. In order to keep your money safe and start building wealth, you need a place where your funds can be kept. Opening a savings account is a common practice for everyone who handles money. In this tutorial, we will consider the reasons for using a bank instead of any other means of money-keeping.

Banks are everywhere because people all over the world trust them with their money. The reason why banks are so popular is that they are secure and convenient.

In terms of security, a bank is one of the safest places where you can store money. Hiding cash under the mattress or in a piggy bank or even burying it in the ground is not safe. There is no guarantee that your house will be protected from natural disasters and emergencies such as fire, floods, or a tornado. Your money is also not prevented from being stolen and damaged over time. Of course, banks are not also 100% safe from the same hazards but they have all the necessary conditions to provide you with secure storage of your means. A legitimate bank is secured with state-of-the-art technology and, more often than not, protected by insurance. In the United States, the Federal Deposit Insurance Corporation (FDIC) insures bank deposits. Even in times of the financial crisis, the FDIC’s protection was absolute.

Keeping money in bank is very convenient. Other than for the obvious reason that banks are everywhere, it is also very convenient because of the banking system. Banking services are very accessible with ubiquity of ATMs and by virtue of the internet. You can now pay bills online and make one-click purchases. And if you need cash, you can just go to your nearest ATM and withdraw it.

In the next tutorials we will learn about the process of choosing the best bank to save money in, the processes involved in banking such as writing checks, making deposits and withdrawals, using credit cards and ATM cards, etc.