A bank is a place to keep money. It's also a business. How does it work? Your money can be deposited or put into an account. The bank lends some of the money on deposit to people who need it. The bank makes money by charging a lending fee.
When banking first began in America, almost anyone could open a bank and print "bank notes". In fact, before the Federal Reserve System (the Fed)was founded, there were 30,000 different currencies in the United States.
The Federal Reserve System was established in 1913 to help banks become more efficient. The Fed supervises banking. it also controls the flow or supply of money so that there is always enough on hand to meet the public's demand.
The Fed distributes all the coin and paper money produced in the United States through 12 offices. Old money is returned to the Fed. Coins can be melted down to make new money. Paper money is shredded or burned.
Showing posts with label banking. Show all posts
Showing posts with label banking. Show all posts
Saturday, October 15, 2011
Monday, October 3, 2011
Smart Banking
You've worked hard for your money. Now, it's time to save smart by banking smart. A savings account can...
keep your money safe
help you earn more money
cash your check
provide access to your money
A bank or a credit union is a safe place to stash your cash. Your account is insured by the federal government. Your account will be interest-bearing. That means that your money earns interest when it's on deposit in your account.
At a credit union, you need a minimum balance. But, you do not pay for an account. At most banks, you pay for the convenience of a bank account. The financial services they offer are just like a bank.
A bank might offer free checking if you are a shareholder or if you use direct deposit for your paycheck. So, shop around and find an financial institution that fits your needs and your budget.
Don't be fooled by the easy of using ATM machines! Whether you select a bank or a credit union, don't let ATM machine fees take a bite out of your hard, earned savings. The convenience of using automated teller machines is an increasingly pricey one. Use them sparingly. Most banks and credit union charge you to use other institution's machine but not there own. Check into the fees before you use the ATM machine.
keep your money safe
help you earn more money
cash your check
provide access to your money
A bank or a credit union is a safe place to stash your cash. Your account is insured by the federal government. Your account will be interest-bearing. That means that your money earns interest when it's on deposit in your account.
At a credit union, you need a minimum balance. But, you do not pay for an account. At most banks, you pay for the convenience of a bank account. The financial services they offer are just like a bank.
A bank might offer free checking if you are a shareholder or if you use direct deposit for your paycheck. So, shop around and find an financial institution that fits your needs and your budget.
Don't be fooled by the easy of using ATM machines! Whether you select a bank or a credit union, don't let ATM machine fees take a bite out of your hard, earned savings. The convenience of using automated teller machines is an increasingly pricey one. Use them sparingly. Most banks and credit union charge you to use other institution's machine but not there own. Check into the fees before you use the ATM machine.
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