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In our financial system, banking and loans support people and businesses by helping to manage their money and get funds when required. If you open a savings account, own a house or take out a loan, understanding how banking and loans function will allow you to decide what is best for you. Here, we’ll go over the basics of banking and loans and discuss types of loans and how to pick the one that matches your needs.
What does Banking mean?
The term banking is used for services offered by banks and credit unions that people and businesses use to manage their money. A good bank offers these services:
- Savings Accounts: Putting money in a savings account helps it grow steadily with interest.
- Checking Accounts: Handled for everyday purposes such as receiving salary, writing checks and making payments.
- Loans: Loans are funds the bank gives out that borrowers have to repay with interest after a set time.
- Credit Cards: Offers you a chance to use borrowed money to buy goods and services which you must pay back in the future.
- Investments: Banks may let customers invest money by allowin
