this is my explanation on how banks work

 How do banks work?

Have you ever wondered what a bank is? well, it 

is a place that keeps your money safe.  It is also a place where you can lend and take money. People can take your money from the bank but they have to pay it back to the bank and the bank will pay it back to you. This is called interest. So how exactly does a bank work?  Well, you’re about to find out!  

Paragraph 1 ( keeping your money safe)

When you open a bank account you deposit some money to the bank, this is because they can keep your money safe and give it to you later for future investments.thousands of people deposit their money to the bank and trust that the bank will keep it safe. banks keep your money in a special tightly secured place called a vault. A volt is a place that the bank keeps everyone's money they keep your money here to prevent it from being stolen so there is no need to worry about your money being robbed.

Paragraph 2 (trading/interest)

People can borrow money from you and you can borrow money from other people as well. If someone borrows money from you they have to pay it back after a year. Say for example  I receive  $600 from a festival and deposit it to my bank account. I will get 2% interest but every year I will also get 2 dollars. That way I am making money just by depositing money to the bank!

 

Paragraph 3 (savings)

After you open a bank account you will have a savings account. A savings account allows you to keep your money safe and it earns a small amount of interest each month. Banks usually offer two types of savings accounts they are a basic savings account and a money market savings account. A basic savings account will usually have either no minimum balance requirement or a low one but will offer a very low-interest rate this means that your money won’t earn that much. A money market savings account usually pays more money interest but that requires you to have more money in your account.

Conclusion 

Overall banks work with tens of billions of dollars. You can find them in pretty much any place in the world. They are great because you can store money in them and take money out when You need to. I hope you have learnt a bit more about banks from this explanation.