It's important to keep money in a bank for safety, convenience, cost, security and your financial future.

It's important to keep money in a bank for safety, convenience, cost, security and your financial future. Banks are subject to federal and state laws. Banks can make loans, pay checks, accept deposits and provide other financial services. Banking is an industry that deals with credit facilities, storage for cash, investments, and other financial transactions. The banking industry is one of the key drivers of most economies because it channels funds to borrowers with productive investments.

• A bank is an institution that accepts customer deposits and offers loans to individuals and corporate clients.
• Banks make money by charging higher interest on loans than the interest they pay on customer deposits.
• Under Federal law: Financial institutions must keep personal financial information private.

The actual reserve requirement is determined by the Federal Reserve Board of Governors. When the Fed reduces the reserve requirement for member banks, it is implementing an expansionary monetary policy, which increases the amount of money in the economy. On the other hand, when it increases the reserve requirement, it is implementing a contractionary monetary policy that reduces liquidity.

All the Fed’s member banks must be insured with the Federal Deposit Insurance Corporation (FDIC). The FDIC was created in 1933 after the Great Depression through the enactment of the Glass-Steagall Act. It came after multiple bank failures that resulted in banking panics, with depositors demanding all their deposits held at the bank.

The FDIC was formed to prevent such occurrences by insuring all deposits that customers keep at the bank. It insures savings accounts, checking accounts, and other deposit accounts. During the 2008 Global Financial Crisis, the FDIC raised the deposit limit to $250,000 per account to protect depositors from the crisis.

The common types of bank accounts include:
1. Savings account - Saving money and being financially healthy helps you reduce stress in times of emergency, provides added comfort when unexpected things pop up in your life, and it comes in handy for major purchases in your future like a car, home, or vacation! FSNB is here to help you make a plan, set a goal, and succeed.

2. Checking account - A checking account allows customers to access their deposited funds with ease, and they can use it to make their financial transactions such as paying bills. A customer can access the funds by writing a check, using a debit card to withdraw money or make payments, or by setting up automatic transfers to another account.

3. Certificate of deposit - A certificate of deposit is a bank account that holds a fixed amount of money for a defined period of time such as six months, one year, two years, etc. It pays a fixed interest rate on the amount held.