Some Facts About Banking Fundamentals

  • Banks perform varieties of functions that include withdrawals, deposits, currency exchange, and wealth management. They also act as a link or bridge between the depositors and borrowers. Banks use the funds that are kept by the customers in the bank to give credit facilities to the companies and the people who want to take a loan. Banks make money mainly through charging a percentage of interest rates in loans.

    But banks have to work within the rules and regulations that are set by the central bank of the country and the national government. There are some banking fundamentals like types of bank accounts, types of banks in the county, and many more banking related things. Bank simulator helps in teaching the principles of banking in a very convenient way. It is done to engage bank employees to collaborate and connect properly in a social environment.

    Types of bank account

    1) Savings account

    It allows the customers to get the customer's funds from the bank very easily; a customer can do it simply by using a debit card in an ATM or just by writing a check.

    2) Certification of deposit

    It is a type of bank account where a bank holds an amount of money of a customer for some time like two years, three years, etc. here, the banks pay interest on that amount which the bank has of a particular customer.

    3) Investment banks

    It provides access to capital markets to raise funds or for the expansion of a corporate client. They mainly help corporate companies in raising funds in the stock market.