Did You Know How do banks work Ever Were?

What will you do if your uncle gives you Rs 1,000 for your birthday; You do not want to lose it  or have it stolen, so you deposit it in a bank. The bank opens an account in your name. When you deposit your money goes into a big pool of money along with everyone else's. You will be given a passbook that shows how much money you have in the bank, and a quench book with which you can withdraw money.

At other times, people may need money for something, but do not have enough of it to meet their needs. So, they go to the bank and borrow the money. They must pay the bank for this service, and this is known as paying interest on a loan.