Banks & Financial Institutions
Most people use a bank or some kind of financial institution to keep track of or store or invest their money. Banks play a part in our
Banks are companies that want you to let them keep your money safe for you. – Money Munchkids definition
All About Kids Bank Accounts: Savings
When you’re a kid, it’s always a great feeling to take important first steps, and in the financial world, one of those steps is your first bank account. A kid’s first bank account is an important step in helping kids understand financial responsibility.
A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. These accounts are very liquid and can be accessed using checks, automated teller machines and electronic debits, among other methods.
A CD, or certificate of deposit, is a savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date. There isn’t much risk involved in opening a CD; they are issued by banks and insured by the FDIC up to $250,000 per depositor. CDs also typically don’t have monthly fees.
Bank accounts allow you to save and easily keep track of your money. If you’re interested in opening an account, however, you’ll have to decide among several different kinds. Here is a look at different types of bank accounts to help you choose the one that best fits your needs and circumstances.
A joint account is a type of bank account that allows more than one person to own and manage it. There is no restriction regarding who can be an owner, which can include spouses, friends and business partners, among others. Everyone named on the account has equal access to funds, regardless of who deposited the money.
Have you ever put money into a bank account? Or withdrawn money to buy a video game? Then you’ve used a bank! Banks are businesses where people keep their money. Banks help us save and spend wisely. So how do banks work? What kinds of bank accounts do people have? Read this book to find out!