how do banks work

 introduction

Banks were made a thousand years ago and they keep your money safe in vaults. It's bigger than a piggy bank because the banks vaults have to be gigantic because they have to store thousands and thousands of dollars in their vaults. 

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If you start earning money you should open a bank account and deposit the money into the bank. The bank uses the money and lends it to other people. After a year they will have to pay it back to the bank. They will make a payment to you for letting them use your money. If you have put your money into a savings account you might get more interest than if you put it into an everyday account. 

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When the bank gives the money to someone else they have to pay a fee, in other words they borrow money from the bank but they don’t get it for free, this could be like a loan or a mortgage. But when they’re finished with the money, they have to pay the full amount that they had borrowed from the people that had given some money to the bank.

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Banks use a process where they borrow, lend and earn interest so that people across the country can use the money that you lend to the bank and then the bank gives it to the people who want to borrow the money.  

Conclusion

Banks provide safe places for people to keep their money.  They can also help you to earn money on your savings or help you out when you need to borrow money.