Depository Insitutions

Commercial Banks

  • For-profit
  • Offer financial services to both consumers and other businesses
  • Usually the largest depository institutions
  • Insurance on money
  • Offer financial services such as special needs payment instruments and financial advice.

Credit Union

  • Owned by customers (members)
  • Require members to share a common bond such as the same employer, location, or membership in a organization
  • Non-profit
  • pay higher interest rates and charge lowers interest rates on loans compared to commercial banks.
  • Offer financial services to members