Banks: A Comprehensive Guide for Beginners

Basic Concepts of Banking

A bank is a financial intermediary institution that collects deposits from individuals and businesses and provides various financial services such as lending, payments, and investments. Banks play a crucial role in the economy, supporting production and business activities, and promoting economic growth.

Common Types of Banks

Commercial Banks:

These are the most common type of bank, primarily engaged in fundraising and lending. Commercial banks offer a wide range of services including account opening, money transfers, card issuance, consumer loans, business loans, etc.

Investment Banks:

Investment banks focus on financial investment activities, M&A advisory, and securities issuance. They typically serve large corporations and high-net-worth individual investors.

Policy Banks:

Policy banks implement the government’s credit policies, supporting policy targets such as farmers, the poor, etc.

Popular Banking Services

Opening a Bank Account:

Opening a bank account is the first step to accessing financial services. You can open savings accounts, checking accounts, etc.

Credit and Debit Cards:

Credit cards allow you to purchase goods and services before paying later, while debit cards are directly linked to your bank account.

Loans:

Banks offer various types of loans such as consumer loans, home loans, business loans, etc. Depending on your needs and repayment ability, you will choose the appropriate type of loan.

Money Transfers:

Banks offer various methods of money transfer such as internal transfers, interbank transfers, and international money transfers.

Choosing the Right Bank

Choosing the right bank depends on individual needs and conditions. You should consider factors such as service fees, interest rates, and customer service quality before making a decision.

Helpful Tips

Carefully review the terms and conditions before using any bank services.
Manage personal finances effectively to avoid bad debts.
Use banking apps to manage your accounts more easily.

Understanding banking is essential in modern life. This article hopes to provide you with basic information about banking and give you more confidence in using financial services.