Financial Institutions
By: Anna Evans
Depository Institutions
Millions of people use financial services given to them by depository institutions daily to help them manage their money. Commercial banks, credit unions, and savings banks are some examples of depository institutions. Many types of companies offer financial services to consumers.
Commercial Banks
Commercial banks are for‐profit depository businesses that offer financial services to consumers and other businesses. Banks are the largest depository institutions and offer the widest variety of services to customers.
What does Commercial Banks offer?
Credit Unions
Credit unions are depository institutions that offer many banking services, but they 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 in. Credit unions are non‐profit organizations exempt from federal income tax. This feature allows them to pay higher interest rates on deposits, charge lower interest rates on loans and charge lower fees.