Savings- a fund of money put by as a reserve
Bank- depository financial institution: a financial institution that accepts deposits and channels the money into lending activities
1. What is a savings account?
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money
2. How do you make money through a bank?
By depositing money into the bank and gaining interest.
3. Define interests?
Interest is a fixed charge for borrowing money; usually a percentage of the amount borrowed.
4. What two types of interests are named?
Simple interest and compound interest
5. When does interest work in your favor?
It works in my favor when money sits in the bank.
6. Banks pay interest in two ways. What are the two ways?Banks pay interest though fees and assets.
7. Simple interest makes your savings grow faster.