Bank account
A Bank Account is record held by a bank of money you have given to them for safekeeping and profit. The account holder will usually receive a certain percentage extra (or interest) added to his/her record periodically, to pay the holder back for lending his/her money to that bank. A holder may lend more money to the bank (to be added on to his/her account) or withdraw (take back) some of the money previously lent. A bank account cannot really have a negative balance, but this is shown sometimes if it is overdrawn (more money was taken out that was owed to you). [1] If more money is needed that in is the holders account, then taking out a loan from the bank may be necessary. In this case, rather than receiving a certain percentage back, a certain percentage extra must be paid later. In this case, you take on the role which the bank has had until now.
External Links:
http://www.themint.org/kids/how-banks-work.html http://money.howstuffworks.com/personal-finance/banking/bank.htm
- ↑ "How Banks Work." The Mint. Web. 3 Dec. 2015. <http://www.themint.org/kids/how-banks-work.html>.