Financial Institutions

By Madison Deane

Depository Institutions

Depository institutions are businesses that provide financial services. The two types of depository institutions are commercial banks and credit unions. Depository institutions have many benefits.

Commercial Banks

A commercial bank is a bank that offers services to the general public and to companies.

Here are some key points regarding commercial banks:


- A commercial bank is for profit.

- A commercial bank is open to anyone who wants to utilize a depository institution.

- A commercial bank offers numerous financial services.

- Commercial banks are usually the largest depository institutions.

- Commercial banks offer the widest variety of services to customers.

Credit Unions

A credit union is a member-owned depository institution that offers many banking services.

Here are some key points regarding credit unions:


- Credit unions are not for profit.

- Credit unions have member qualifications, members must share a "common bond."

- Credit unions offer many services but usually not as many as a bank.

- Credit unions are often able to pay higher interest rates and charge lower fees.

- Credit unions are exempt from federal income tax.

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Citations (for the pictures)

McBarron, Charles. "Financial Security – Locked Cash." Illinois Education Association. N.p., n.d. Web. 15 Sept. 2016


Nov 21 2013 in Personal Finance by Guest Blogger. "The Ugly Undeniable Truths About Financial Security - Fiscal Today.". N.p., 2013. Web. 15 Sept. 2016.