Financial Institutions
by Yuki Tsutadani
Commercial Banks
- Commercial banks are insured by the Federal Deposit Insurance Corporation (FDIC) with each depositor insured up to $250,000.
- Banks are businesses that give services for-profit.
- Pays interest to depositors.
- Offers checking and savings accounts.
- Offers credit to borrow money.
Credit Unions
- Credit unions are insured by the National Credit Union Administration (NCUA) with each depositor insured up to $250,000.
- Credit unions are owned by the customers and are non-profit.
- Pays interest and usually higher interest rate for depositors than commercial banks.
- Offers checking and savings accounts.
- Offers credit to borrow money.