Financial Institutions
By: Daniela G.
Commercial Bank
- For profit
- Open to anyone who wants to utilize a depository institution
- Offer numerous financial services
- Usually the largest depository institutions
Credit Union
- Non-for-profit - owned by members
- Have membership qualifications - members must share a "common bond"
- Offer many services but usually not as many as a bank
- Are often able to pay higher interest rates and charge lower fees
Types of financial institution
Depository Institution
Allows customers to deposit money in an account.
Non-depository Institution
Do not allow costumers to deposit money. Insurance companies are non-depository.
Investment
Professionally managed portfolios of securities by pooling their funds with other investors.
Features of Depository Institutions
Features
Online Banking- Complete certain transactions from a secured internet site. Access account information any place, transfer money, pay bills/set up recurring bill payment, apply for credit.
Debit Cards- Function in the same manner as checks but faster and more portable. Use PIN or signature to authorize transactions.
ATMs- Withdraw and deposit money, transfer money, check account balance.
Contactless Payment- "Wave" a card in front of a sensor for fast and easy transactions.