is a bank?
bank is an organization which manages money. It is
a safe place to store your money and where you can
get a loan if you need money now but can't pay all
of it back until later. When people like you or a
business open up a savings account, or put your money
in an investment (e.g. Mutual Funds, etc. the bank
pays you interest. Then, the bank reinvests your money
in other things like loans and tries to earn a larger
interest rate for itself. When the loans are payed
back to the bank, that money goes towards paying out
interest to all the bank customers. The difference
between what the bank makes and what it pays you,
as a customer, is how it covers its costs and stays
in business. When you put your money into a bank,
you are actually making your money go to work for
you. For every dollar you put into your account you
earn extra money just for keeping it in a safe place.
five reasons to choose a bank?
stick your money in a bank versus your underwear drawer?
Here are five good reasons:
If it's in a bank you're less likely to forget where
you put your money.
You can have access to your money in a bank from
virtually anywhere you are in Canada and many parts
of the world.
If someone robs the bank, you don't lose your money.
You can make money just by leaving your money in
Your kid brother or sister won't accidently find
your money at a bank.
personal account is a way for you and the bank to
keep track of your money. Every account is given a
number. With this number you can access from any branch
of CIBC and from CIBC bank machines to make a deposit
or withdrawal, pay bills or transfer money between
different accounts you might have.
is the charge made for the use of someone else's money.
If you borrow money, you pay interest to the lender.
If your investment earns interest, that is what you
receive for allowing someone else to use your money.
if you have $200 in your Clown Club account and it
earns 2.79% interest (yield)? How much money will
you earn in one year? In two years? In three years?
one year, your new account balance will be $205.58.
Here's how I got this number: $200 x .0279 + $200
two years, your account balance will be $211.31!
Here's how I got this number: $205.58 x .0279
+ $205.58 = $211.31
three years, your new account balance will be
Here's how I got this number: $211.31 x .0279
+ $211.31 = $217.20
have earned $17.20 in interest in three years!
that you put into your bank account is called a deposit;
money you take out is a withdrawal.
credit card enables you to get a loan that allows
you to spend an amount of money at a store, on almost
anything you want, up to whatever your maximum credit
card spending limit is set at. At the end of the month,
you'll get a bill for the amount you spent. If you
pay the whole bill immediately, the loan won't cost
you anything. If you don't, the bank that gave you
the credit card will charge you interest on the amount
a debit card you can make an immediate withdrawal
from your account to buy anything from groceries to
a pair of jeans at a store that accepts it for payment.
Unlike a credit card, the money has to be available
in your account for the direct payment to be accepted.
A direct payment is any amount you transfer from a
bank account to pay for something you just bought.
can now do a lot of banking with a personal computer
(PC). This includes paying bills and transferring
money between different kinds of accounts.
Automated Bank Machine (ABM) is a computer that allows
you to make simple transactions by yourself. Bank
machines give you 24 hour, 365 day access to your
money from any one of hundreds of locations around
the world. You can make deposits or withdrawals, pay
bills, transfer money between accounts, and get an
update on f your account balances.