Banking is the business of keeping money safe and lending it to people who need it. When you deposit money in a bank, the bank stores it securely and often pays you a small amount called interest for letting it hold your money. The bank then lends that money to other people, like families buying homes or business owners opening stores, and charges them a larger amount of interest for borrowing it. The difference between what the bank pays depositors and what it charges borrowers is how banks make money.

Banks also provide other important services. They let you write checks, use debit cards to buy things, and transfer money electronically instead of carrying cash everywhere. Banks keep detailed records of all your transactions, which helps you track your spending and proves you paid for something if there's ever a question.

Today's banking system is complex, with regulations designed to protect people's deposits and prevent banks from taking foolish risks with customers' money. The word also describes the act of using bank services: when your parents go banking, they might be depositing a check or discussing a loan.