A bank is a financial intermediary that takes in funds from those with money (depositors) and lends them to people and businesses that need them. The fee for this service is called interest. Banks also make money by selling securities, providing other financial services and offering credit cards and insurance.

The term bank is generally used to refer to a commercial bank, but it can also describe any institution that deals in money or provides financial services. Some banks are very large and global in scope, while others are smaller local institutions. Banks are regulated by governments to protect the interests of their customers.

Banks are essential to the domestic and international payments system, matching up creditors and borrowers. They also create money when they lend funds, and they are the core of a country’s financial safety net, providing stability and confidence in difficult times.

Banks offer a safe place to store money, keeping it protected from theft and fire. They also provide an opportunity to earn interest on savings accounts, helping to keep people’s money growing. When you save your money in a bank, it is often backed by the Federal Deposit Insurance Corporation (FDIC). This means that if the bank fails, your money is insured up to $250,000 per person or institution. The same is true of many other financial products, such as mutual funds and credit cards. Banks can fail, like other businesses, but their failure is often more serious because of the role they play in communities and the economy.