Question 1

What is a bank?

Accepted Answer

A bank is a place where people can keep their money safe. It also helps people save money and gives them loans when they need extra cash.

Question 2

Why do people use banks?

Accepted Answer

People use banks to save their money and keep it safe. Banks also help people buy things like a house or a car by lending them money.

Question 3

What is a savings account?

Accepted Answer

A savings account is like a piggy bank where you can put your money and watch it grow over time. The bank gives you a little extra money called interest for keeping your money there.

Question 4

What is a checking account?

Accepted Answer

A checking account is where you put your money in so you can use it easily. You can pay for things with checks or a debit card from this account.

Question 5

What does a bank do with people's money?

Accepted Answer

The bank uses people's money to help others by giving them loans. In return, they give a little extra money to people who keep their money in the bank.

Question 6

What is interest?

Accepted Answer

Interest is like a reward you get for saving your money in the bank. It's a small amount of extra money the bank gives you.

Question 7

What is a loan?

Accepted Answer

A loan is when the bank gives you money to buy something, and you promise to pay it back later. You have to pay back a little more than you borrowed as a thank you to the bank.

Question 8

What is a credit card?

Accepted Answer

A credit card is a small plastic card that lets you buy things now and pay for them later. The bank lends you the money and you pay it back when you can.

Question 9

Why are banks important?

Accepted Answer

Banks are important because they keep our money safe and help us borrow money when we need it. They also help the world by keeping money moving around.

Question 10

What is online banking?

Accepted Answer

Online banking lets you manage your money using a computer or phone. You can check your balance, move money, and pay bills without going to the bank.

Question 11

Are banks safe?

Accepted Answer

Yes, banks are very safe places to keep your money. They have special systems and rules to make sure your money is protected.

Question 12

What is an ATM?

Accepted Answer

An ATM is a machine where you can get money from your account whenever you need it. You just need your bank card to use it.

Question 13

How do banks make money?

Accepted Answer

Banks make money by charging a little extra when they lend money to people. They also make money by offering special services to their customers.

Question 14

What is a bank teller?

Accepted Answer

A bank teller is a person who works at the bank and helps you do things like deposit or withdraw money. They're like helpers at the bank.

Question 15

What is a bank branch?

Accepted Answer

A bank branch is a local office or building where you can go to use bank services. It's like your neighborhood bank store.

Question 16

What is a mortgage?

Accepted Answer

A mortgage is a big loan that helps people buy a house. You pay it back over a long time with a little extra for the bank.

Question 17

Can kids have bank accounts?

Accepted Answer

Yes, kids can have special bank accounts with the help of their parents. These accounts help kids learn how to save money.

Question 18

What is a bank statement?

Accepted Answer

A bank statement is a list of all the money going in and out of your account. It helps you see exactly where your money is.

Question 19

What happens if you lose your bank card?

Accepted Answer

If you lose your bank card, tell the bank right away. They can stop anyone else from using it and send you a new one.

Question 20

Why do banks charge fees?

Accepted Answer

Banks charge fees to help pay for the services they offer, like keeping your money safe and helping you move it around. These fees help banks operate smoothly.

Banking industry - 20 FAQs Explained Simply