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How banks pay interest on your savings?

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  • Price per Classroom$2.00
  • Grade Levels 7, 8, 9, 10
  • Topics Saving
  • Duration 10 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

Activity Description

In this interactive worksheet, students will be presented with a graphical representation of deposit and loan transactions within a bank, allowing them to gain insights into how banks function financially. The central focus of this activity is to empower students with the knowledge needed to understand the mechanics of banking transactions. They will explore how banks generate interest income from borrowers, pay interest to depositors, and ultimately turn these financial operations into a profit. Through thoughtful analysis, students will uncover the inner workings of financial intermediation.


Students will use this image to do the interest calculations and to answer the review questions in the worksheet

This worksheet is a classroom-ready interactive and dynamic worksheet that just needs a few clicks to assign to your classroom. The worksheet is auto-scored, teachers just need to open the real-time console and monitor the student progress.

Learning Objective

Students will use this worksheet to understand the intermediation process happening in a bank. They will be provided with a scenario as shown below and asked to answer some questions -

Teacher Tips

Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).

National Standards in Personal Financial Education

Saving 8-3 -
Saving

Students will know that Financial institutions pay interest to depositors and loan out the money to borrowers who pay interest on their loans .. Students will use this knowledge to 8-3a . Compare and contrast different types of financial institutions and their products and services . 8-3b . Compare the interest rate paid by a financial institution on savings accounts to the interest charged by the same institution on loans . 8-3c . Explain how financial institutions get the money to pay interest to their customers who deposit money in savings accounts .

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  • Price per Classroom$2.00
  • Grade Levels 7, 8, 9, 10
  • Topics Saving
  • Duration 10 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

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