Let’s Save for the Future Class 6 Notes Questions and Answers Social Science Chapter 11

By reviewing Kerala Syllabus 6th Standard Social Science Notes Pdf English Medium and Class 6 Social Science Chapter 11 Let’s Save for the Future Notes Questions and Answers Kerala SCERT Solutions, students can improve their conceptual understanding.

Class 6 Social Science Chapter 11 Let’s Save for the Future Notes Questions and Answers

Class 6 Social Science Let’s Save for the Future Notes Questions and Answers

Class 6 Social Science Chapter 11 Question Answer Kerala Syllabus

Question 1.
Have you listened to the conversation between the teacher and the children? What are they talking about?

Answer:
The teacher and the children are talking about opening a bank account. The teacher is checking whether the students have opened their accounts and encouraging others to do it soon.

Question 2.
Prepare a reading card including the details of the Reserve Bank.

Answer:

Question 3.
Observe the picture and complete the list.

Answer:

DEPOSITORS	BORROWERS
Individuals	Individuals
Institutions	Institutions
Government	Government

Question 4.
Banks are the intermediaries between depositors and borrowers. Justify this statement.
Answer:
Banks act as intermediaries because they stand in between the people who deposit money and the people who borrow money. Depositors keep their money safely in the bank, and the bank uses this money to give loans to those who need it, like individuals, institutions, or the government. The bank then returns the money to depositors with interest and collects interest from borrowers. In this way, the bank connects depositors and borrowers and helps money flow safely in society.

Question 5.
Examine the pictures given below and find out whether the interest rate is higher for deposits or loans. Discuss why.

Answer:
The interest rate is higher for loans than for deposits. Banks give us a little extra money (interest) when we keep our savings with them. But when people take a loan from the bank, they have to pay more interest. This is because the bank needs money to operate and provide services to everyone. So. banks charge higher interest on loans than they give for deposits.

Question 6.
What are the benefits of a bank account for students? Find out and complete the list.
Answer:

• Helps to save money safely
• Teaches good saving habits
• Allows easy deposits and withdrawals
• Helps students learn how banks work
• Enables receiving scholarships or allowances

Question 7.
Let’s complete the worksheet.

Answer:

Deposits	Tenure	Interest	Withdrawal
Savings Deposit	Not applicable	Low rate of interest	There are restrictions
Current Deposit	Not applicable	No rate of interest	Any number of times
Fixed Deposit	Applicable	High rate of interest	After maturity period
Recurring Deposit	Applicable	High rate of interest	After maturity period

Question 8.
Add the names of banks you know.
Answer:
ICICI bank, HDFC bank, Punjab National Bank, Bank of Baroda, Union Bank of India

Question 9.
Organise a panel discussion on different types of banks and their features.
Answer:
Our class organised a panel discussion on the different types of banks. The teacher selected a few students to act as panel members. Each student explained one type of bank and its features in a simple way.

• One student talked about Public Sector Banks, which are run by the government.
• Another student explained Private Sector Banks, which are managed by private companies.
• A panel member spoke about Co-operative Banks, which help farmers and small businesses.
• Another student discussed Regional Rural Banks, which mainly support people in villages.
• One student talked about Foreign Banks, which have headquarters in other countries but branches in India.
• The last panel member explained Payments Banks, which help people make digital payments easily.

After the discussion, the audience asked a few simple questions, and the panel members answered them confidently. The activity helped all students understand the different types of banks and how they help people in their daily lives.

Question 10.
Find and note down the situations when the financial transactions can be made using digital devices/cards.
Answer:
Online Shopping – Paying for goods or services on e-commerce websites using debit/credit cards, UPI, or mobile wallets.

• Bill Payments – Paying electricity, water, internet, gas, or mobile bills via apps or net banking.
• Money Transfers – Sending money to family, friends, or businesses using UPI, mobile banking apps, or cards.
• ATM Withdrawals/Deposits – Using debit or credit cards at ATMs for cash withdrawal or deposit.
• Mobile Payments at Shops – Paying at stores using QR codes, contactless cards, or mobile wallets.
• Booking Tickets – Paying for movie, bus, train, or flight tickets online or through apps.
• Subscriptions – Paying for digital services like streaming platforms, magazines, or apps.
• Banking Services – Using net banking or apps to check balance, open FD/RD, or pay loans.

Let’s Save for the Future Questions and Answers Extended Activities

Question 1.
Interview the head of your institution and list the various accounts in the school.
Answer:
After interviewing the head of the institution, the following major accounts were identified in the school:

• General Fund Account – Used for day-to-day school expenses.
• Salary Account – For paying teachers and non-teaching staff.
• Fee Collection Account – For collecting students’ tuition fees and other charges.
• Library Account – For buying and maintaining books and library materials.
• Laboratory Account – To purchase lab equipment and chemicals.
• Sports and Games Account – For buying sports materials and conducting events.
• Maintenance Account – For repairing and maintaining school buildings and equipment.
• Scholarship/Concession Account – For providing scholarships, fee concessions, or financial assistance to students.
• PTA Account – For Parent-Teacher Association activities.
• Activity Account – For celebrations, educational tours, and extracurricular activities.

Question 2.
Visit a bank and observe the financial transactions taking place there and prepare a note.
Answer:
I visited a bank and observed many financial transactions happening there. The bank was quiet and well- organised. People were standing in queues to deposit and withdraw money. I saw customers filling out forms to deposit cash and cheques. Some people used ATMs to withdraw money quickly. The bank staff at the counters helped customers by updating passbooks, giving cash, and receiving deposits. I also noticed people transferring money using digital methods like UPI and online banking. There was a separate counter for senior citizens. I learned that banks help us keep our money safe, provide loans, and let us send or receive money easily. The visit helped me understand how important banks are in our daily lives.

Question 3.
Collect news related to bank fraud and organise an awareness class under the auspices of the Social Science Club.
Answer:
(Hints)
1. Collection of News
Members of the Social Science Club collected recent news reports about different types of bank fraud. These included:

• ATM card fraud – People losing money when thieves steal card details.
• Online fraud (phishing) – Fake messages or emails asking for bank details.
• UPI scams – Fraudsters sending links and tricking people into sharing OTPs.
• Loan scams – Fake calls offering loans and collecting money from people.
• Fake customer care calls – Scammers pretending to be bank officials.

2. Conducting the Awareness Class
The class began with an introduction about why bank safety is important. Students explained each type of bank fraud and shared real news stories they collected.

They also taught important safety points:

• Never share OTP, PIN, password, or CVV with anyone.
• Do not click on unknown links.
• Use official bank apps only.
• Check bank messages regularly.
• Report suspicious calls or messages to the bank.

Question 4.
Collect logos related to financial institutions and add them to ‘My Social Science Observation Book.’
Answer:

Question 5.
Find out which account is suitable for the following purposes and complete the worksheet.
Answer:

CONTEXT	ACCOUNT
To deposit the money received from chit fund in the bank for education of children in the future.	Fixed Deposit
To deposit the monthly pension amount and withdraw money for expenses	Savings Account
To deposit the daily income received through business and withdraw it as per needs.	Current Account
To deposit a fixed amount every month to make the dream of owning a house a reality.	Recurring Deposit (RD)

Let’s Save for the Future Class 6 Notes Pdf

Std 6 Social Science Let’s Save for the Future Notes

• Banks are financial institutions that accept money from the public as deposits and provide loans to those in need following certain criteria.
• The individuals lending the surplus money to the needy led to the emergence of local money lenders.
• The word ‘Bank’ in English is derived from the words ‘Banca’ in Italian and ‘Banque’ in French.
• The first bank in Kerala was the Nedungadi Bank, established in 1899 with its headquarters at Kozhikode.
• The Reserve Bank of India, established in 1935 is the Central bank of India. Its headquarters is in Mumbai.
• Banks act as intermediaries between the depositors and the borrowers. They work on the basis of general rules and norms.
• The banker is a person or establishment that carries out the banking business.
• A bank account is an arrangement for making financial transactions between a bank and a customer. These are recorded in a pass book.
  • Based on ownership, bank accounts can be mainly classified into three types.
  • Individual account
  • Joint account
  • Institutional account
• Commercial banks are the oldest banks with a large number of branches in the banking sector.
• Commercial banks can be classified into two categories as public sector banks and private sector banks.
• In India, the largest commercial bank in public sector is the State Bdnk of India (SBI).
• Co-operative banks were started with the aim of providing loans with low interest rate to farmers, artisans and small-scale industrialists.
• Development banks are banks that provide long-term loans in the industrial-commercial -agricultural sectors.
• Banking has changed to a system where money transactions can be done without carrying cash in hand.
• ATM helps us to withdraw money from our account at any time without going to the bank.
• UPI is a digital system that allows multiple bank accounts to be used through a single mobile application.
• Different types of Deposits include: Savings deposit, Recurring deposits, Fixed deposits and current deposits.

Introduction
In this chapter, “Let’s Save for the Future,” we learn about the importance of saving money and how banks help us do it safely. We first understand how banks were formed and why people started using them. Then we leam how banks work, how they keep our money safe, give loans, and help us send or receive money. The chapter also teaches us about different types of accounts and deposits like savings accounts, fixed deposits, and recurring deposits. We also explore the different types of banks that serve people in many ways. Finally, we see how banking has changed over time with ATMs, online banking, and mobile apps. This chapter helps us understand why saving is important and how modem banking makes our life easier.

FORMATION OF BANKS
Banks are financial institutions that accept money from the public as deposits and provide loans to those in need following certain criteria.

MONEY
Anything that is accepted in exchange for goods and services can generally be called money. Money helps to determine the value of goods and services, and facilitates their exchange.

FORMATION OF BANKS

• The individuals lending the surplus money to the needy led to the emergence of local money lenders.
• As the number of people who needed loans increased, the money lenders had to find more money. For this, they started accepting deposits. This led to the formation of financial institutions.
• The ability to repay the loan and reliability were the criteria for lending money by these institutions.
• When the acceptance of deposits and lending loans increased excessively, individuals were unable to perform this function themselves. This paved way for the rise of financial institutions, including banks.

BANK
The word ‘Bank’ in English is derived from the words ‘Banco’ in Italian and ‘Banque’ in French. Both words mean ’bench’. In the past, merchants used to lend money in the streets in Italy, accepting gold and silver in return. They used to conduct transactions sitting on benches where coins were placed.

• A new banking system began in India with the arrival of the English East India Company. ‘The Bank of Hindustan’, established in 1770 was the first bank in India.
• The first bank in Kerala was the Nedungadi Bank, established in 1899 with its headquarters at Kozhikode. This private bank was founded by Appu Nedungadi.

Changes that took place in economic activities when the local financial institutions developed into banks:

The Reserve Bank of India, established in 1935 is the Central bank of India. Its headquarters is in Mumbai.
Major functions of the Reserve Bank of India:

FUNCTIONING OF BANKS

• Banks act as intermediaries between the depositors and the borrowers. They work on the basis of general rules and norms.
• Banks accept deposits from individuals, institutions, and government.
• The bank returns the deposits with interest after a specified period. The bank lends money to the needy from such deposits.
• The borrowers repay this amount to the bank with interest. The banker is a person or establishment that carries out the banking business.
• The additional amount that a person has to pay when he repays a loan and the additional amount he gets on his deposits can be said as interest. There is interest on deposits and loans. The bank charges a certain amount as interest from the people who take loans. From this, the bank finds the amount for its operations and pays interest to those who deposit money in the bank.

Let’S Open An Account

• A bank account is an arrangement for making financial transactions between a bank and a customer. These are recorded in a pass book.
• A passbook is a system for recording financial transactions between a bank and a customer. It contains the name of account holder, address, nature of the account, account number, and important information related to the bank.
• Anyone above the age of ten can open a bank account.
• Children below ten years can open a joint account with their guardian. Now bank accounts can also be opened online.

Documents that were submitted to the bank along with the filled in application to open an account:

• Proof of identity and Address (Aadhar Card, Passport, Driving License, Voter ID card, Pan card, Bank passbook or bank statement)
• Photographs: Two recent passport-sized photographs are usually required.

DIFFERENT TYPES OF ACCOUNT/DEPOSITS

• Based on ownership, bank accounts can be mainly classified into three types.
• Individual account
• Joint account
• Institutional account

Deposits can also be classified according to their characteristics.

Savings Deposit:

• This deposit is to instil the habit of saving in individuals. Individual and joint account holders can start savings deposit.
• The bank pays low interest on these deposits. Money can be deposited as many times as they want. However, there are some restrictions to withdraw money.

Current Deposit:

• This investment is aimed at traders and industrialists.
• Any number of transactions can be made in a day. There are no restrictions on depositing and withdrawing money.
• No interest is paid for this account.

Fixed Deposits:

• This is an account where the deposit is made only once and it is withdrawn with interest after a certain period.
• The bank pays higher interest on such deposits.

Recurring Deposit:

• This is another form of fixed deposit. A fixed amount is deposited in this account at regular intervals (daily, weekly, monthly) for a specific period of time.
• The amount can be withdrawn only after the maturity period.
• It earns higher interest than savings deposit.

In the early 1970s, the Central Government launched the Sanchayika Scheme for school students. Now it is known as ‘Students Saving Scheme’. It was designed to promote the habit of saving among the students and create an awareness about banking activities. It operates under the National Savings Scheme. Students who join the scheme will receive a passbook with an account number from their school.

Different Types of Banks

Commercial Banks

• Commercial banks are the oldest banks with a large number of branches in the banking sector.
• They provide services such as accepting deposits, granting loans, locker facility, debit card, credit card, and online banking to their customers.
• Commercial banks can be classified into two categories as public sector banks and private sector banks.
• In India, the largest commercial bank in public sector is the State Bank of India (SBI).

Public Sector Banks And Private Sector Banks
Public sector banks are banks that are fully owned and operated by the government. Example: Union Bank, Canara Bank. Private banks are owned and operated by private individuals. These banks are also subject to the regulations of the Reserve Bank. Example: South Indian Bank, Federal Bank

Co-Operative Banks

• Co-operative banks were started with the aim of providing loans with low interest rate to farmers, artisans and small-scale industrialists.
• The main objectives of co-operative banks are to promote self help and mutual help, inculcate the habit of saving among the people, increase investment and to protect the people from the exploitation of private money lenders.
• Kerala Bank, formed by the Government of Kerala, is one such bank. Co-operative banks operating in rural areas are called Rural Co-operative Banks and those operating in the urban areas are called Urban Co-operative Bank.

Kerala Bank
Kerala Bank is a co-operative bank formed by the Government of Kerala. Kerala State Co-operative Bank Limited is known as Kerala Bank. Kerala Bank was formed by merging the State Co-operative Bank and the District Cooperative Banks. It’s headquarters is in Thiruvananthapuram.

Development Banks

• Development banks are banks that provide long-term loans in the industrial-commercial – agricultural sectors.
• Eg: Industrial Finance Corporation of India (IFCI), National Bank for Agriculture and Rural Development (NABARD).

The Changing Face Of Banking

• Banking is a rapidly changing sector in the modern era. With the changing times, banks are implementing many facilities to provide better services to the customers
• Today there is no need to go to banks directly for making transactions.
• With the advent of mobile apps and internet banking, various banking services are easily available to customers.
• Banking has changed to a system where money transactions can be done without carrying cash in hand.

ATM (Automated Teller Machine):

• ATM helps us to withdraw money from our account at any time without going to the bank.
• We can also deposit money at any time using the CDM (Cash Deposit Machine) facility.

UPI (Unified Payments Interface):

• UPI is a digital system that allows multiple bank accounts to be used through a single mobile application.
• This system allows us to make money transactions without going to the bank or ATM.
• We can transfer money at any time with the help of digital devices. Transactions can be done using QR code (Quick Response code), mobile number, and account number.

CREDIT CARD AND DEBIT CARD
Credit card and debit card are cards issued by banks to their customers to make financial transactions. The main convenience that customers enjoy is that they do not have to carry cash. A debit card can only be used if there is money in the account, whereas a credit card can be used to make transactions, even if there is no money in the account. Banks lend money to credit card holders only for a certain period of time. Banks charge interest if the money is not repaid within the time limit.

Careful Banking
Fraudulent activities are common in cyber space.

Precautions to be adopted for recognising and defending them:

• Do not share ATM PIN and OTP
• Do not open suspicious online links.
• Do not respond to phone messages asking for account details.
• Do not keep ATM PIN on phone.
• Use strong passwords. Change password frequently.