3.5.1 Enrichment

Commercial Banks

  • These are for‐profit depository businesses that offer financial services to both consumers and other businesses.
  • They are usually the largest depository institution and offer the widest variety of services to customers.
  • Some banks may offer online banking, which 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.
  • With 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.
  • As well, banks may also offer information, advice and assistance regarding a wide range of financial‐ related topics including investments and estate planning.

Credit Unions

  • These are depository institutions that offer many banking services. However, 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 free from from federal income tax.
  • The fact of 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.
  • Just like banks, credit unions allow members to obtain use of credit cards and have online systems that help the members to manage their accounts quickly and easily.