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Financial Institutions and Their Services

Author: Jeff Carroll

Source: Image office building, dollar bill, images by Video Scribe, License held by Jeff Carroll; Image of United States, Creative Commons, http://bit.ly/Szo9xj.

Video Transcript
Terms to Know
Commercial Banks

A bank that provides services to companies and individuals.

Credit Union

A cooperative that is nonprofit, set up for a specific membership who owns it and provides a variety of banking services for it’s members.

Mutual Savings Bank

A bank that is set up by a local government, without capital stock and is maintained by with members who contribute to a common fund.

Non-Deposit Institutions

An institution that can offer some services, such as a mortgage, but cannot accept deposits.

Savings and Loan Associations

A financial institution that limits it’s services to making loans and accepting deposits; a legal limitation is that no more than 20% of it’s loans can be offered commercially.