Financial Institutions

by Yuki Tsutadani

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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.
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