KRIGYAN

Banks and the Magic of Finance

Class 7 · Social Science

1 idea in Class 7 Social Science, explained in plain words, with games and quizzes to practise.

Banks and Financial Infrastructure

Part of: Economic Life Around Us

Financial infrastructure: banks, payment systems, stock markets and other institutions that help manage money. Banks accept deposits, lend money and earn from the interest-rate gap. Three account types: savings (individuals, earns interest), current (businesses, no interest), fixed deposit (higher interest for a fixed term). Compounding: earning interest on previous interest. ₹1,000 at 6% grows to ₹1,060 (year 1), ₹1,123.60 (year 2), ₹2,012.20 (year 12).

Why it matters. Understanding banks and compounding helps students make smart financial decisions — saving early and consistently is the key to financial growth.

Try it in two minutes

  1. Ask: what are the three types of bank accounts?
  2. Ask: what is compounding, and why is it powerful?
  3. Ask: what is the difference between a savings account and a current account?

Try at home. Ask your child to calculate how much ₹500 grows to in 2 years at 6% interest using compounding.

What your child will practise

  • Banks and Financial Infrastructure: Candy Puzzle (Clue Puzzle)
  • Banks and Financial Infrastructure: Space Quick Fire (Quick Fire)
  • Banks and Financial Infrastructure: Time Travel Quest (Collect the Answer)
  • Quiz: Banks and Financial Infrastructure (8 questions)