Banks as custodians
Explore why banks take deposits (safe keeping) and make loans (income).
In this lesson
Banks as custodians is part of What Is a Bank?. This preview shows how banking-basics connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Today’s money mission
Imagine this situation: You deposit 20000 in local currency at GTBank. The bank lends 15000 in local currency of it to a business.
What you need to know
Banks take deposits (safe keeping) and make loans (income). The spread between deposit interest paid and loan interest earned is the bank's revenue model.
Real-life example
Real-life money moment: Bank takes 1000000 in local currency in deposits, pays 4% to depositors. Lends 700000 in local currency at 15%.
Progress Penguin connection
In Progress Penguin, complete or review one practical action connected to “Banks as custodians.” Use this lesson objective: Explore why banks take deposits (safe keeping) and make loans (income). Record what you checked, the evidence you used, and your next step.
Activity preview
Try the money challenge
Match each key term from this lesson to its definition. The trickiest pair connects to: banks take deposits (safe keeping) and make loans (income). If a match feels wrong, reread the guided explanation and try again.
Quiz preview
Banks make money mainly by:
You deposit 20000 in local currency at GTBank. The bank lends 15000 in local currency of it to a business. Is your 20000 in local currency still safe?