For every hour you spend doing something for someone in your community, you earn one hour to use to have someone do something for you.
The way the exchanges happen is pretty simple. In a nutshell:
Let's say you need someone to help out in the garden for two hours. You can post a request to the timebank or search the timebank directory and contact another member to set up an exchange.
A timebank member then comes by and helps out in the garden. Once the service is completed, you transfer hours on the timebank from your account to the service provider. You've spent two time dollars and another member has earned two time dollars that s/he can spend elsewhere in the timebank.
You can also post service offers to earn more hours and help out your community. Posting specific offers and requests help generate more exchanges and invigorates the timebank.