Where Do People Keep Their Money?

A bank is a business that borrows and lends money. It accepts deposits from customers and provides loans to individuals and businesses. Most people have bank accounts because they offer a secure place to store money and easy access when needed. Bank accounts are essential for several reasons:

  • Safety: They keep your money secure.
  • Access to Loans: They make it easier to borrow money when needed.
  • Online Purchases: They facilitate online shopping.
  • Digital Banking: They allow you to manage your money through banking apps.
  • Bill Payments: They simplify paying bills.
  • Convenience: They eliminate the need to carry large amounts of cash.

You can usually open a bank account online or by visiting a bank branch. Proof of identity is required (this means providing a document that shows your name, date of birth, and address). Young people can open an account from the age of 11, although if you are under 16, a parent or guardian must be present.

Types of Bank Accounts

  • Current Account:
    • Used for everyday transactions with instant access to your money.
  • Savings Account:
    • Designed for saving money; interest is earned as a reward.
  • Individual Savings Account (ISA):
    • Similar to a savings account, but the interest earned is tax-free.