Chapter 2: What is a Bank Account?

What is a Bank Account?  Chapter Image

A bank account is a financial service provided by banks and other financial institutions, allowing you to safely store, deposit, and withdraw your money. There are various types of bank accounts, including savings accounts, checking accounts, and money market accounts, each serving different purposes. These accounts enable you to manage your finances conveniently, earn interest on your deposits, and facilitate transactions such as bill payments, transfers, and investments.

Types of Bank Accounts:

  • Savings Account: Used for saving money, earning interest on deposits.
  • Checking Account: Used for daily transactions, such as paying bills and making purchases.
  • Fixed Deposit Account: Money is deposited for a fixed period and earns higher interest.
  • Current Account: Designed for businesses with frequent transactions.

Functions:

  • Deposits and Withdrawals: Safely deposit and withdraw money.
  • Payments and Transfers: Facilitate payments and money transfers.
  • Interest Earnings: Earn interest on the money deposited.
  • Financial Tracking: Track and manage personal finances efficiently.

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