WHAT IS MONEY?

Save

Savings are money kept over a long period of time, usually in a bank or even in an old jam jar without the risk of loss or making profit.

When you save money your money is secure. You are guaranteed to get back the sum you put in, plus interest.

Savings -account       

There are two basic kinds of interest:

»simple interest »compound interest

Savings -accountSimple interest        

• Simple interest is figured once on the principal.• If you loaned Rs 300 to a friend for one month and

charged her 1% interest (Rs3) at the end of the month, you'd be dealing with simple interest.

Savings -account     Compound interest is a little different With compound interest, the money you earn in interest becomes part of the principal, and also starts to earn interest. If you loaned that same friend Rs300 for one month but charged her 1% each day until the end of the month, you'd be using compound interest. At the end of the first day, she would owe you Rs303. At the end of the second day, she would owe you Rs306.03. At the end of the third day, she would owe you Rs309.09, and so on.

ANSWER THIS QUESTION

KIDS CAN OPEN BANK ACCOUNT

TRUE

HOW CAN YOU PUT THE MONEY YOU SAVED IN A BANK?

BY CREATING A SAVINGS ACCOUNT

Savings -accountSavings accountAn savings account used to deposit money

in the bank.bank have certain rules for the minimum

balance which has to be held in the account.

This account gives interest for the money held in the account.

Money can be added or withdrawn at any time from this account.

Savings -account Remember that if you add money to your

account, your balance might grow a lot more. And, if you withdraw or take money out, it might

grow much less. When you add or take away from your account,

you're changing the amount you can earn as well. And when you're building a money TV of savings,

every rupee counts.

Pass-Bookwhen we open a savings account with

any bank we are given a pass book.

The pass book contains the name of the

person in whose name the account is

opened.Each person is given a separate savings

account number.

the passbook gives you details of deposits & date of deposit, withdrawal… which are made by the person.

Current Account

Current Account

These are basically meant for businessman, firms and companies.

It does not give interest for the money held in the account.

Internet BankingFixed DepositsA fixed deposit is meant for those

investors who want to deposit a lump sum of money for a fixed period.

say for a minimum period of 15 days to five years and above.

Investor gets a lump sum (principal + interest) at the maturity of the deposit. 

Fixed deposits also give a higher rate of interest than a savings bank account. 

Internet BankingRecurring DepositThe minimum amount of Recurring

Deposit varies from bank to bank but usually it begins from Rs 100/-.

a specific sum of money is deposited on a monthly basis for a specific period of 6 months to 10 years.

• At the end, you will get the principal sum as well as the interest earned during that period.

Internet BankingInternet Banking

One of the main reasons that people use Internet banking over regular banking is because of the convenience.

Everybody wants methods that are going to save them time and make daily tasks easier on them, and that is exactly what Internet banking does.

allows customers to conduct financial transactions on a secure website

ATM CUM DEBIT CARD

ATM /Debt cards and Credit cards.These are basically issued by banks to persons who have an account with them.

An ATM card gives you access to your bank savings and current account 24 hours a day, 7 days of the week.

There are two types of cards they are theDebit and credit cards.

ATM /Debt cards and Credit cards.credit cardsA plastic card with magnetic strip on one

side which is used to swipe. It is used to buy goods and services.The bank issuing the credit card pays the

bill first then collects the money from the holder of the card.

Credit card offers a 25 day grace period during which no interest is charged.

ATM /Debt cards and Credit cards.Debit cardsA plastic card with magnetic strip on

one side which is used to swipe.It is used to buy goods and services.The bank issuing the debit card pays

the bill first then collects the money from the holders account immediately.

Does Post office offer….Savings account a minimum deposit amount is Rs.20 maximum is 1 lakh.The consecutive deposits should also be more than Rs.5.The withdrawal amount should be more than Rs.5. Investment can be made for as many years as possible.

A post office recurring deposit account (RDA)

is similar to a recurring deposit in a bank, where you can invest a fixed amount on a monthly basis. The postal RDA has a fixed tenure of five years.

These deposits accumulate money at an annual fixed rate of interest of 8 per cent. The interest is  compounded on a quarterly basis. The minimum investment in a post office RDA is Rs 10 and there is no prescribed upper limit.

For example, if you invest Rs 100 every month in

60 installments, you will earn a sum of Rs 7,289 after

5 years.

500 RUPEE NOTE?

?

You know there are identification marks in a Indian rupee note that will help blind people in identifying the notes.

It is usually represented by a raised black circle OR triangle

Have we ever looked closely at a currency note or a coin?

500 RUPEE NOTE?

Have you heard of the word Security Thread in a note?

It is a security feature in notes to protect against FORGERY/MAKING OF FAKE NOTES

It consist of a ribbon which is threaded through the paper .

The ribbon is usually made up of metal foil or plastic and usually has some text or numbers engraved on it.

500 RUPEE NOTE

Bartering worked for many years until it was no longer convenient to trade.

After bartering, metal became the most popular form of money in most of Europe and Asia.

People used gold, silver, and copper as money because they were pretty and hard to get.

The problem with the metal was that it was too heavy.

People hated carrying it around.

Kids next time you look at money remember that it has a very interesting history behind it.