How Banks Work.

 How Banks Work 

Do you know what a bank is? If you don't I will be telling what a bank is. For basics a bank is a physical ATM, you lend coins to the teller ( a person who gives and takes your money) and they lend you notes. Banks have been around for thousands of years. When you deposit money into the bank, they keep it in a special place called a vault. 

What is a bank account? A bank account is a safe place to store your money and yes YOU can make money by going to the bank and opening an account. For instance, you deposit $10 to the bank and they will give it to someone so they can use it. After they have used it they need to pay something called interest, you need to pay interest if you have borrowed money from someone. Let's say they pay 7% interest the bank will get 5% of that and you will get 2% of that, that's how you and the bank earn a profit. 

How to open a bank account? If you're a kid and you want to open a bank account you should start opening a KiwiSaver account. If you don't know what a KiwiSaver account is it is like a bank account but you don't need to have a job, you only need to be living in NZ. For adults, there are many banks in New Zealand to open a bank account to for example ANZ, BNZ, ASB and many more. You should open a bank account because it is an easy and safe place to store your money, when you open a bank account you will get a credit and debit card. A debit card is where you store your personal money that you have earned and a credit card is a card which stores the bank's money, if you use it then you have to pay the money back to the bank at some point.