The Many Things That Banks Can Do For You
If you have a job, putting some of that paycheck away for the future is a smart thing to do.
You can either put it under your mattress or put it into a financial institution where it can be kept safe.
Banking is based upon the relationship of trust, and the knowledge that the money is there when you need it could help with your peace of mind.
How banks work and what types of services they offer could help you prepare for your future.
Our economy cannot function as it should without a banking system.
What they do is borrow from one individual to pay another who desires to open a loan or withdraw funds from his account.
When you make a deposit into your account, it goes into a larger pool of money that is used by multiple individuals, but stays fluid in yours.
This process is all controlled and protected by the Federal Reserve and helps keep cash flowing through the economy.
You have several options in banking.
These include commercial banks, which originally worked with businesses, but are now open for public use; savings institutions, which used to be options for lower income workers to save some money; cooperatives for factory workers; and credit unions, which were once only open to certain professions and were often housed within the business, but have since opened to the public.
Most people now do their personal banking at commercial banks.
There are several services that financial institutions provide.
One of these is a checking account, which lets you pay for things without carrying cash or a credit card.
Other services are loans and various types of savings accounts.
These are for keeping your money safe and allowing you to add to it occasionally so that the balance accrues over time.
These accounts are often taken out by parents for their children, who cannot use the money until they reach a certain age.
There is also a money market account, which bears interest and allows only a few transactions a month.
The interest rate is typically higher than a regular savings account and does require a minimum balance.
A certificate of deposit account gives you the option of putting money aside for a short period of time to bear interest.
There are usually penalties for taking it out early.
The longer the CD is held by the bank, the higher interest rate you can get.
Finally, you can do an individual retirement account, or IRA, which requires you to keep the money in the account for a specific amount of time.
It does bear interest and requires a minimum deposit.
If you are looking for a way to help build up money for your child's education, a big purchase, or for your retirement, see your financial advisor.
He can help you use the banking industry to your advantage.
You can either put it under your mattress or put it into a financial institution where it can be kept safe.
Banking is based upon the relationship of trust, and the knowledge that the money is there when you need it could help with your peace of mind.
How banks work and what types of services they offer could help you prepare for your future.
Our economy cannot function as it should without a banking system.
What they do is borrow from one individual to pay another who desires to open a loan or withdraw funds from his account.
When you make a deposit into your account, it goes into a larger pool of money that is used by multiple individuals, but stays fluid in yours.
This process is all controlled and protected by the Federal Reserve and helps keep cash flowing through the economy.
You have several options in banking.
These include commercial banks, which originally worked with businesses, but are now open for public use; savings institutions, which used to be options for lower income workers to save some money; cooperatives for factory workers; and credit unions, which were once only open to certain professions and were often housed within the business, but have since opened to the public.
Most people now do their personal banking at commercial banks.
There are several services that financial institutions provide.
One of these is a checking account, which lets you pay for things without carrying cash or a credit card.
Other services are loans and various types of savings accounts.
These are for keeping your money safe and allowing you to add to it occasionally so that the balance accrues over time.
These accounts are often taken out by parents for their children, who cannot use the money until they reach a certain age.
There is also a money market account, which bears interest and allows only a few transactions a month.
The interest rate is typically higher than a regular savings account and does require a minimum balance.
A certificate of deposit account gives you the option of putting money aside for a short period of time to bear interest.
There are usually penalties for taking it out early.
The longer the CD is held by the bank, the higher interest rate you can get.
Finally, you can do an individual retirement account, or IRA, which requires you to keep the money in the account for a specific amount of time.
It does bear interest and requires a minimum deposit.
If you are looking for a way to help build up money for your child's education, a big purchase, or for your retirement, see your financial advisor.
He can help you use the banking industry to your advantage.