No, you've got it right, and you've got a good head on your shoulders for realizing that. You would be surprised at how many people don't realize this.
Those connections are called "5 way binding posts" and you CAN use banana plugs, or you can use spade lugs, or you can use pin connectors inserted into the hole of the center post, or you can insert a bare wire into that same hole, or you can simply strip a wire, wrap it around that center post. With the last four, you simply need to tighten down the nuts.