Lesson 10-2: Deposits vs. Non-deposit Institutions
Attempt: 1
Deposit Institutions
There are many types of Financial Institutions and no two are the same, however, they typically fall into two categories – Deposit Institutions and Non-Deposit Institutions.
A Deposit Institution accepts cash deposits from customers. Below are examples of Deposit Institutions:
o Commercial Banks
o Organized and run like corporations
o Offer many financial services: Checking, Lending, Savings, and Others.
o Savings and Loan Associations – traditionally focused on savings accounts and mortgage loans. Many now offer services comparable to a bank.
o Mutual Savings Banks
o Specialize in savings and mortgages
o Owned by the depositor (you), bank profits are converted to a higher rate on your savings.
o Credit-Unions
o User owned, nonprofit organizations. Membership is much more flexible than it used to be.
o Very often have lower fees and lower loan rate. Credit unions tend to have the highest customer satisfaction levels.
o Credit Unions are a very viable option for students and young adults.
Learn more about how to find a right bank for students:
MoneyRates.com's How Can My College Student Find the Right Bank?