Video transcript

Have you ever wondered what banks really do? Let's take a look at how they help people, businesses and communities.

First up, people. Banks provide a safe place to keep money, so it can’t get lost down the back of the sofa. But they’re not big vaults where money sits around collecting dust! They also exist online, where you can check your money, move it to a savings account, or pay for things. Banks also help people manage their money by answering questions, giving advice, and helping people make smart financial decisions. One way they do this is by providing bank statements. These are like a diary for your bank account showing all the money that went in and out of your account over a period of time. Some people use this to budget – this is when they plan for how they’ll spend their money.

Got a savings goal? Banks can help you save towards that goal. When you open a savings account, the bank will pay you something called interest. Interest on savings is an extra payment given to you for keeping your money with the bank. The more you save, the more interest you’ll earn. Sometimes people want to make big purchases, but they don't have enough money. A bank might lend them some of the money so that they can pay for things they might not be able to afford on their own. This is a loan. With a loan you might be able to buy a car, or even a house! But here’s the deal…when you borrow money, you’ll need to pay it back, and this time you’ll be paying the interest. That’s an extra charge from the bank for lending you money. The more you borrow, the more interest you’ll pay. So, you’ll pay back more than you were loaned.

Banks don’t just help people; they help communities too. Love your local park? A bank might have helped build it by giving your local council a loan. The same goes for schools, hospitals, and even homes. And they’re a big help to businesses too; lending money and advising people who want to start or grow their business.

Lastly, banks have rules to follow to keep money and customers safe. This is called regulation. This means they don’t lend out too much money or run out.

This way, everyone can access their money whenever they need it. So, there you have it! Banks certainly are busy, aren’t they? From keeping your money safe to helping communities thrive – they’re here to help.