A bank keeps people's money safe. It does so until they want it. They can use it then.

A bank is a business. It takes in deposits and makes loans. Putting money in is called a deposit.

People put money in a bank. The bank lends some of it to other people.

You can take money out. You can do it when you need it. Taking it out is called a withdrawal.

An ATM is a machine. People can take money out of their bank account there.

A bank pays its savers extra money. The extra money is called interest.

A savings account is for setting money aside. The bank pays interest on it.

A jar at home does not earn extra money. A savings account can.

A checking account is for everyday spending. It can pay for lunch. It can pay for groceries.

At home, money can be lost. A fire can take it. A burglar can take it.

A bank can be FDIC-insured. There, people need not worry about money lost or stolen.

The FDIC is a United States government agency. It protects people's money in banks. It does so if a bank fails.

Words to know

• deposit: money put in
• withdrawal: money taken out
• interest: extra money
• checking: everyday spending