Many Kinds Of Banks - Many Kinds Of Accounts
Sometimes looking into opening an account or accounts in banks
can be confusing. There are so many types of banks and bank
accounts! Which banks are right for you to open anaccount in?
Which types of accounts do you need to open? Below are some
simple explanations of several types of banks and the accounts
you can open. One will surely be right for you!
There are many kinds of banks:
1. Savings Banks - these banks can also be called "Thrifts", and
are businesses that are for-profit. Savings Banks take deposits
of money, invest that money, and pay the depositor interest out
of the money made from those investments. Some Savings Banks
give credit to depositors.
2. Credit Unions - these banks are non-profit financial
institutions. A Credit Union is owned and controlled by those
doing business there. Membership is needed to get into a Credit
Union, normally determined by where the person works, their
location, or possibly where the go to church.
3. Commercial Banks - these banks used to only deal with
businesses, but have extended their services to individuals.
Commercial banks offer individuals most of the same services as
other types of banks.
4. Savings & Loans - these banks usually provide savings
accounts. Money deposited into these banks is then loaned out to
local residents in the community, normally for home loans.
5. Investment Banks - these banks do just what the name
says...they invest. Investment Banks buy and sell stocks and
bonds and give investment advice to its clients. These banks do
not accept deposits, make loans, and are not insured by the FDIC
(Federal Deposit Insurance Company).
There are many kinds of accounts:
1. Savings account - this type of account is probably the most
basic account offered by banks. You deposit money into a savings
account and earn interest on that deposit based on the APR, or
Annual Percentage Rate.
2. Checking account - this type of account allows for
depositing, withdrawal, and the writing of 'checks' to pay bills
and for purchases. Many banks now offer ATM or debit cards along
with the standard checkbook when you open a checking account.
3. Certificate of Deposit - this type of account, also known as
a CD, is for deposit only. You don't touch the money deposited
in a CD for an agreed upon amount of time, ranging from 6 months
to several years, and you will earn a guaranteed amount of
interest. If you do withdraw the money before the agreed upon
date, many banks will charge you a fee.
4. Money Market account - this type of account is similar to a
savings account. The interest rate of a money market account is
higher than the traditional savings account, but the minimum
balance is typically $10,000 or more!
These are the basic kinds of banks and accounts available. Look
around, and shop around, for a bank that is right for you.
About the author:
http://www.flexbanks.com is a great resource site with
information from banks, accounts, credit cards, bank rates,
foreclosures to mortgages, loans and much more. Be sure to
visithttp://www.flexbanks.com with host, Sintilia Miecevole for
further information.
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