![]() ![]() These institutions typically prey on those with a poor credit history (more on that below), but also charge astronomical interest rates. ![]() Here’s a great article with more information about credit unions.Ī banking institution to avoid is a payday lender. Credit unions are not insured by the FDIC, but rather the National Credit Union Administration, which provides the same $250,000 insurance as a commercial bank. Because there is a strong customer connection to a credit union, fees and other charges are typically lower. Many companies and geographical locations have credit unions. Additionally, while commercial banks are open to all, credit unions are for those within a certain defined group. ![]() In contrast to commercial banks, which are typically owned by shareholders, credit unions are controlled by its members. Savings and Loan Institutions are similar to commercial banks, but focus the majority of their business on mortgages.Īnother common banking institution is a credit union. Like a commercial bank, credit unions offer services like savings and checking accounts and loans. The FDIC insures deposits of up to $250,000, and while it is a part of the US Government, is funded by dues from commercial banks. National bank chains such as Bank of America are examples of commercial banks. These institutions are backed by the Federal Deposit Insurance Corporation, or FDIC. The most popular, and common, banking institutions are commercial banks. Commercial banks offer services such as savings and checking accounts and loans to consumers, business, and organizations alike. While there are many options for conducting your banking, not all of them are created equally, each with their own pros and cons. In this section, you’ll learn about the different banking institutions and the services they offer, in addition to the importance of credit. Introduction: Banking is central to our economy, and our personal finance, making it crucial that one develops a strong understanding of how banking works. ![]()
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