Where & How do I do Wow banking?

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Like a real bank, your bank account is your own, it can't be accessed by any other player. Getting access to your bank is very easy, just pop into any branch in any friendly city location and you will have access to your bank. You don't have to be in the same bank you placed your items to retrieve them later on, any bank you visit will have all the items you placed in it. This is similar to a cash point system in the real world. To activate the banking window simply talk to the Banker NPC which will open up the banking interface. Items can then be moved between your inventory and your bank account.
With the two factions of the Alliance and Horde playing an integral part in the game, Alliance players cannot access Horde banks and vice versa. Each character you create also has its own bank and you cannot share one of your character's bank accounts with another of your characters. However, you can mail items using the postal system to your other character assuming they are both on the same server and faction. [See Postal System]
It is important you use your space well and due to the nature of the questing system, it is sometimes worthwhile holding on to certain items that may crop up in a later quest. A prime example of such an item is Murloc fins, these have a tendency to crop up in more than one quest so having a store of these to utilise later may be a good idea, saving you time on completing a quest.