103Course · Foundation

Banking

The institution behind the account, and how to choose one.

The Course

A bank is a ledger, a promise, and a regulator standing behind both. This course teaches you what to demand from the institution that holds your operating cash, how to compare one bank to another on the twelve variables that actually matter, and how to move money between rails with intent rather than habit.

By the end of the course you should be able to design a three-account architecture that serves your household for the next decade — and to change banks without panic when the incumbent stops earning your business.

Outcomes
  • 01

    Explain what a bank is and how it makes money.

  • 02

    Evaluate a bank on safety, service, and cost.

  • 03

    Move money between accounts with precision and intent.

Prerequisites
  • Course 101 — Money.
  • Course 102 — Personal Finance recommended.
Pacing

1 week · ~3 hours.

  • IModule · ~1 hour.

    What a bank is

    A ledger, a promise, and a regulator.

    Behind the branch is a business: deposits in one door, loans out another, and a regulated spread between the two. This module makes the business legible.

    What You Will Be Able To Do
    • Explain the deposit-loan spread and the risks it carries.
    • State what deposit insurance covers and what it does not.
    • Read a bank's call report at the level a depositor needs.
    Why here

    You cannot choose a bank well without knowing what a bank is. This module makes the choice principled.

    1. 01The business of bankingArticle12m
    2. 02Deposit insuranceArticle12m
    3. 03Reading: Bagehot, Lombard Street (excerpts)Reading25m
  • IIModule · ~1 hour.

    Choosing an account

    The account, the bank, and the network.

    Checking, savings, and money market accounts serve different jobs. Choosing well is a matter of matching the account to the job, and the bank to the household.

    What You Will Be Able To Do
    • Distinguish the three account types by their operating properties.
    • Compare banks using a defensible twelve-variable matrix.
    • State the case for and against a digital-first bank.
    Why here

    Most households hold the wrong mix of accounts because no one taught them the taxonomy. Fixing this pays a small yield forever.

    1. 01Checking, savings, money marketArticle12m
    2. 02Comparing banksVisuals8m
    3. 03Digital-first banksArticle12m
  • IIIModule · ~1 hour.

    Operating the account

    The habits of a well-run treasury.

    A well-run treasury uses at least three accounts — operating, reserve, and long-term — and moves money between them on rails chosen for the situation.

    What You Will Be Able To Do
    • Design a three-account architecture for your household.
    • Choose between ACH, wire, and instant payment for common scenarios.
    • Establish an operating cadence that does not require attention.
    Why here

    Architecture beats willpower. Set the accounts up correctly and the household runs itself.

    1. 01The account architectureVisuals8m
    2. 02Wires, ACH, and instant transfersArticle12m
    3. 03Quiz: Banking mechanicsQuiz10m
A Note from the Faculty

Choosing a bank is a small decision that repeats every day. Getting it right once removes friction from thousands of subsequent decisions.