Banks also offer services such as different types of loans and mortgages to qualified individuals and businesses.
Today, there are many different types of financial institutions that provide a wide range of services to individual consumers and businesses. Some of these institutions offer general services, while others are more specialized in what they offer. Here are a few examples of several of the more common types of institutions that might be helpful, depending on the type of financing being considered.
Perhaps the most common of all financial institutions is the bank. Banks provide the simplest financial services used by most consumers. Checking and savings accounts are staples of most banks, along with relatively safe investment opportunities like certificates of deposit. Banks also offer services such as different types of loans and mortgages to qualified individuals and businesses. For many people, the local bank is the first and possibly the only financial institution they will do business with.
Credit unions are financial institutions that function much like banks. What is a little different with these institutions is that they typically cater to a more exclusive group of clients. Membership in a credit union is often based on whether you work in a particular profession, are a member of a particular organization, or live in a particular geographic area. The range of services provided by a credit union is very similar to that offered by banks and generally carries the same type of loss coverage, although it may vary depending on applicable national laws.
Savings and loan institutions also offer many of the same services that banks and credit unions provide. In some cases, mortgages and loans offered by these financial institutions may have better interest rates than local banks or credit unions. While most savings and loans are governed by the same rules, regulations, and protections offered by other banking institutions, there are some countries around the world where the scope of savings and loans is more limited than other options.
Several different types of financial institutions focus on investment activities for individuals and corporations. This includes private lenders, mortgage companies, loan companies, brokerage houses, and retirement fund management companies. These types of institutions often work with and through banks and similar organizations to conduct business on behalf of their clients. As with other types of financial services, these types of institutions operate in accordance with the laws that regulate finances within the country of origin.
With the advent of Internet commerce, many financial institutions operate partially or exclusively online. There are online banks that allow consumers to create and manage savings accounts, money market shares, and even trade stocks and bonds. You can build an investment portfolio using online resources, set up a 401(k), and even monitor and purchase bond issues.
There is some type of financial institution to meet almost any need. From extensive banking services to the expert services of a mortgage or investment broker, you can develop financial goals and implement strategies that will help ensure a stable financial future.