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Welcome to Wealthy Saturday. Many of us wish to save money to prevent unnecessary spending. Banks provide a variety of options for you to save. And today we are here to share the basics of banks and the type of account.

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Importance of Banks

The bank is an industry based on finance that handles the facilities of credits, investments, and cash storage. Also, it provides services of loans, safe deposit boxes, currency exchange, transactions, and managing bank accounts. They act as a link between the depositors and borrowers because the deposited funds are used to offer loans for the borrowers. The banks make money by charging an interest rate on loans.

The goal of banks is to earn profit and they get their profit through charging a high-interest rate more than paying it to the deposits of customers. For example, if the bank charges 5% interest rate on loans, and pays 1% interest rate to the deposited account where they earn 4% interest rate as a gross profit. They usually hold 10% of each deposit and provide the remaining 90% as loans. But both the customers and businesses get benefited by banks and so it is known as an important part in the economy.

Type of account to choose

The bank provides various types of accounts and benefits through them. Let’s have a basic idea of each account to make better and suitable choices.

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