1. Banks and Banking
What banks do you know
of?
Can you name some?

7. SO MANY BANKS!!!
• Why do you think there are different banks
instead of just one?
• What might people look for in a bank?
• Why would you save with a bank?

8. OLI – To calculate interest rates and
decide on the best bank
• Today you are going to calculate the amount
of money a customer would gain in interest
with different banks.
• Answer the questions and decide which bank
offers the best interest rate.

9. HOW TO CALCULATE INTEREST
• Let’s try an example:
• John puts £250 into his bank account with
Northern Bank
• Northern bank are giving a 5% interest rate
• First find 1% of John’s money - £2.50
• Now times it by the interest rate - £2.50 x5
• This gives us the amount of interest which is
£12.50
• How much money does John have in his bank
account now?

10. Compound interest
• If John now has £262.50 and the interest rate is
still 5%, how can we calculate his second year?
• £262.50 divided by 100 = 2.625 or £2.63
• £2.63x5=£13.15
• Add this to the original £262.50
• His total in the second year is £275.65
• How much has John gained in interest over two
years?

11. Success Criteria
• Find 1% of the customer’s original amount
(divide by 100)
• Multiply this by the interest rate
• This shows the money gained in interest
• Add this to the original amount to find the
new bank balance