Welcome to the website.
You will find here all the financial entities worldwide. Most of them have an online presence through a website, an app or both.
Banks are entities that are organized according to special laws and that are dedicated to working with money, for which they receive and have in their custody deposits made by individuals and companies, and grant loans using those same resources, an activity that it is called financial intermediate.
To perform the activity of receiving money and then giving it on loan, they charge those who need it and ask for loans. Also, those who give them money in deposit, they pay for the trust deposited. The difference between what is paid and what they pay is the profit that allows the bank to operate normally.
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However, the history of banking dates back several centuries before, around the year 2000 B.C. with the trade of goods between the cities of Assyria and Babylon. Then there were already grain loans between farmers and merchants.
There is also archaeological evidence of monetary loans in this same period in China and India.
Although the activity has been professionalized and it is widespread throughout the world, little has evolved in essence according to those first lenders: banks were born to mediate between one and other agents, channeling savings to those who need money to invest, companies and the public sector fundamentally, or to consume. The rest are ornaments.
First, a bank is a business like any other business: its goal is to strive to make as much money as possible.
It does business just by moving the money, keep that in mind as we move through the different services that the entity offers.
One of the first services that most people use is a savings account.
At first glance, a savings account is a financial product for which you give money to the bank and it offers you a return. You earn an amount of money as long as you have the money deposited in the account. You can withdraw the money at any time and without penalties or commissions.
What actually happens is that a savings account is actually a loan, being you the lender.
It is no different from any other loan, except it is very flexible: you can give all the money you want to the financial entity and borrow the money whenever you want.
Thanks to this flexibility, the profitability of savings accounts, in general, is not very high.
A deposit is one as a savings account but with a certain duration. In exchange for higher profitability, you may not be able to get the money whenever you want or if you are allowed to cancel whenever you want, you have a penalty or commission.
A payroll or checking account is not very different from a savings account: you are lending your money to the company but through a checking or payroll account, which rents you for the basic services and operations that you can access.
The other important aspect that people think when they consider financial entities is loans: people are lent money to buy houses, cars, go on vacation, etc.