What happens to your money when you give it to a bank?

When you give your money to a bank through a deposit, several things can happen:

Account Creation: The bank will create an account in your name, typically a checking or savings account, to keep track of the funds you have deposited.

Record Keeping: The bank maintains records of your deposits, including the amount, date, and any relevant details provided during the transaction.

Security: Banks are responsible for safeguarding your deposited funds. They have security measures in place to protect against theft, fraud, and unauthorized access to your account.

Lending and Investments: Banks often use deposited funds for various purposes, such as lending money to other customers or businesses and making investments. These activities help generate revenue for the bank.

Interest and Fees: Depending on the type of account you have, the bank may pay you interest on your deposits or charge fees for certain services. The specific terms and conditions are outlined in the account agreement.

Withdrawals and Transactions: When you need to access your money, you can make withdrawals or perform transactions such as transferring funds to other accounts, paying bills, or using a debit card linked to your account.

It’s important to note that while your money is held by the bank, it is still considered your asset, and the bank is obligated to return the deposited funds to you upon request (subject to any terms and restrictions associated with your account).