Types of Financial Institutions
By Chad Barbour
- For-Profit depository business
- Offers financial services to both consumers and other businesses.
- Usually are the largest depository institutions and offer the widest variety of services to customers.
- The standard insurance amount is $250,000 per depositor, per insured institution, for each account ownership category.
- Insurance protection by the Federal Deposit Insurance Corporation.
- Non-Profit depository business exempt from federal income tax.
- Owned by their customers, called members.
- 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.
- Pays higher interest rates on deposits, charge lower interest rates on loans, and charge lower fees.
- Insurance protection by the National Credit Union Association.