Depository Institutions

Commerical Banks

Commercial banks are for‐profit depository businesses that offer financial services to both consumers and other businesses. Banks are usually the largest depository institutions and offer the widest variety of services to customers
* Banks are owned by stockholders

*Up to date online banking

* Convenient locations

*More options than credit unions

* Less personalized

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Credit Unions

Credit unions are depository institutions that offer many banking services. But, unlike banks, they are owned by their customers, who are usually called members. A credit union has membership qualifications that require its members share a common bond such as the same employer, the geographic area in which they live or membership in an organization. Credit unions are non‐profit organizations exempt from federal income tax. This feature often allows them to pay higher interest rates on deposits, charge lower interest rates on loans and charge lower fees, compared to banks and other depository institutions.
* Credit Unions are owned by its members

* Has fewer complications than commercial banks

* Better service than commercial banks

*Typically has lower fees than banks

* Higher interest rates

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