Litecoin (or in short: LTC) is a virtual, distributed, peer to peer currency.
That means there's no central authority managing your money! No banks, no goverment, nothing. Your account won't be freezed and noone can take you money away.
That also means there're almost no fees. Litecoins are the cheepest way to move your money around. The only fees are here to protect bitcoin network from flooding and to help it stay secure
And talking about security. Litecoin use very advanced cryptology. Even better then most of the "real world" banks!
Litecoins also help you stay anonymous. You can generate new address for every transaction. For free and without limits! And if you are careful, noone will be able to connect your addresses with each other.