- Commercial banks are for‐profit depository businesses that give financial services to both consumers as well as other businesses.
- These institutions are usually the largest depository institutions and offer the largest variety of different services to customers.
- Some banks may offer online banking, this allows customers to complete certain transactions from a secured Internet site by using a username and password from any place in the world with Internet access.
- When using banks, you are able to receive credit cards; credit products allow you to borrow money from the financial institution in exchange for your promise to repay those funds in the future.
- Plus, banks may also offer information, advice and assistance regarding a wide range of financial‐ related topics including investments and estate planning.
- Credit Unions are depository institutions that offer many banking services. But, unlike banks, these institutions are owned by their customers, who are usually called members.
- A credit union has membership qualifications that require its members to share a common bond such as the same employer, the area in which they live or a 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.
- Like banks, credit unions allow members to obtain use of credit cards and have online systems that help the members to manage their accounts.