Do You Know the Difference?
There are a number of places that you can save your money;
Commercial Banks, Retail Banks, Savingss & Loans and Credit Unions. Do you know the differences between them?
Commercial Banks primarily work with businesses. They specialize in the needs of business, both small and large. Besides offering basic accounts like checking and savings, they also offer lines of credit, loans for equipment and expansion, some accounting and financial advice.
Retail Banks deal with consumers like you and me. They handle your checking and savings as well as CD's mortgages, auto loans, and credit cards.
Savings & Loans were created after WWII to help promote affordable home ownership in the post war boom. Funds deposited in S&L's are recycled into mortgages. At the time even though the rates were a little higher than retail banks, the extended terms made a big difference.
Credit Unions To most people there is no visible difference between them and banks or S&L's but they have a lot of unique features. A Credit Union is a non-profit financial institution that is owned and operated by its members. Member/owners are united by a common bond (i.e. firefighters or teachers). They often offer lower loan rates and higher savings rates because they don't focus on profitability like banks, but rather on performance and service. They are generally a good choice for your financial transactions if you qualify.