"The bank is over there."
I'm afraid you've got it mixed up. There are two situations you need to distinguish: When the speaker and the listener are roughly in the same place (for example, next to each other), or when they are apart.
When the speaker and the listener are apart, you use
「これ」 to refer to something close to the speaker
「それ」 to refer to something close to the listener
「あれ」 to refer to something further away from both
When the speaker and the listener are roughly in the same place, you use
「これ」 to refer to something close to the two of them
「それ」 to refer to something further away, but not too far away from the two of them
「あれ」 to refer to something more or less far away from the two of them
In the second case, it's not easy to make a clear distinction between 「それ」 and 「あれ」. Therefore, in that situation, people mostly use 「これ」 and 「あれ」 only.
What I explained for 「これ」/「それ」/「あれ」 can be applied to the other "kosoado words" like
and so forth.
There are lots of these words that follow a pattern of こ, そ, あ, and ど.
こ... = Closer to the speaker than the listener. そ... = Closer to the listener than the speaker. あ... = Distant from both the speaker and the listener. ど... = The speaker is asking "where?" or "which?" This is always used as part of a question, as far as I know.
In English, we don't have a real distinction between the two that are represented in Japanese as そ and あ. For the purpose of Duolingo, use whichever works in context and it should be fine. Keep what I wrote above in mind when you're outside of Duolingo's sheltered confines, though.
Thank you! I was a little confused since I'd heard people state it that way before.