Because banks are insured by the government (for the most part) it makes them pretty safe places to store your money.
Now when you do that, there is a curious thing that happens. To you, your money is still there, because if you look in your bank account online you will see it or if you call your banker and ask him he will say it is there.
But you know what? It actually isn't there. The Bank has taken your money and loaned it out to somebody else.
That's right those dollar bills you handed the teller are not there anymore.
But don't get worried or call the FBI- it the way the modern economy is supposed to work. Your money is being used to do something valuable like build a dam, a ship or something else that will generate profits so that the people and businesses who built these things can pay the bank back your money and the interest you are earning and a bit of interest to the bank too.
Now lets say somebody borrowed the money you put in the bank to make a bridge.
They take the money and go to a construction company and pay for the bridge to be built.
But guess what - the construction company has a bank account at your bank too. So they put the money in there until the start building.
And then along comes somebody who want to build a building and the borrow that money to make a building.
Oh and just for fun lets say its the same construction company. So they take that money and put it in the bank too.
So here comes the question: There are 1000 individual savers like you who each put $100 in the bank. How much money can we loan the people making the bridge and the people making the building?
OH there is one more thing - the Federal Government used to make sure than banks had to keep at least 10% of its money with out loaning it out (it no longer requires that, which is probably too bad).
If you explain to people how banks work they will be really impressed and probably recommend you to go to work for the Federal Reserve.
Oh you can call it the money multiplier effect for more...well effect!!