Bank account
A Bank Account is record held by a bank of money you have given to them for safekeeping and/or profit. The account holder will usually receive a certain percentage extra (or interest) added to his/her record periodically, to pay the holder back for lending his/her money to that bank. A holder may lend more money to the bank (to be added on to his/her account) or withdraw (take back) some of the money previously lent. A bank account cannot really have a negative balance, but this is shown sometimes if it is overdrawn (more money was taken out that was owed to you).[1] If more money is needed that in is the holders account, then taking out a loan from the bank may be necessary. In this case, rather than receiving a certain percentage back, a certain percentage extra must be paid later. In this case, you take on the role which the bank has had until now.
There are various kinds of bank accounts. The most common are savings accounts and checking accounts.
References
- ↑ "How Banks Work." The Mint. Web. 3 Dec. 2015. <http://www.themint.org/kids/how-banks-work.html>.
