Help:Banking

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On the banking screen, you can exchange bonds for gold and vice versa. You can also transfer money to other characters and to your family.

Bonds/Gold

Almost everything you need to pay for is done with gold coins, but tax money and money transfers are sent as bonds. Also, bonds can not be taken away by enemy rulers if you get imprisoned. However, when you leave a realm, all your bonds become worthless paper.
There is no perfect formula of how much gold to keep as gold coins and how much to change into bonds. Usually, you will want to keep a good part of gold in coins to pay for stuff, though.

Money Transfers

You can send bonds to other nobles in your realm. You can not send gold coins, and you can send bonds only in 25, 50, 100, 150, etc. chunks.
You can also send gold to your family, raising family wealth. A wealthier family will give starting characters more gold to begin with, and beyond a certain wealth, you can ask for additional gold during emergencies even with characters that are now new. There are rumours that very wealthy families also unlock other features.