Table of contents
ntroduction I hat is a bank? W 4 6 7 8 11 13 14 16 18 20 23 25 27 30 31 34 35 36 40 ow do people start banks? H ow did banking begin? H ow do I choose a bank? H
hy are there so many different types of banks? W hat types of accounts do banks offer? W s it difficult to open a bank account? I hat happens to money after you deposit it? W hat happens when you apply for a loan? W hat are checks, and how do they work? W hat is electronic banking? W
redit cards, debit cards, stored valued cards: What’s the difference? C o banks keep large amounts of gold and silver in their vaults? D hy do banks fail? W o you lose money if your bank fails? D
o you lose money if your bank is robbed? D esources for Everyone R
ow does the Federal Reserve fit into the U.S. banking system? H
Some young savers stash their cash in shoe boxes or jelly jars. Others use “piggy banks,” which today look more like spaceships or cartoon characters. In any case, the same problem arises. Sooner or later, the piggy bank or jelly jar fills up, and you have to make a decision: Should I spend the money or continue to save? And if I continue to save, should I open a bank account or just find a bigger jar? Maybe you’ve had to face such a decision yourself. If you decide to keep your money at home, it will just sit there and won’t earn any extra money for you. You also run the risk that a burglar, a fire, or some other disaster will wipe out your savings in the wink of an eye. Then again, if you open a bank account, you can’t “visit” your money as easily as you can when it sits in your dresser drawer. You can’t just walk into a bank in...