Did you know that there a variety of different bank types that people use for different purposes? When thinking about investing your money for the first time, it can be easy to think that all banks are the same. This couldn’t be further from the truth!
Here are some of our classifications of different banks and how they help their customers the best.
Type One: Retail Banks
These types of banks are probably the ones that most people are family with. They offer their customers checkings and savings accounts. Retail banks have a tendency to focus on the general public, the consumers.
Retail banks also offer personal loans, credit cards, and usually have multiple locations in populated areas. They are the most common bank that people encounter.
Type Two: Commerical Banks
The Commercial bank is primarily focused on the needs of businesses. Their services are slightly more complex than retail banks and usually, have higher transactions. Just as the retail bank they also offer checking accounts and savings accounts.
Additional resources for businesses include high lines of credit to help manage cash low, assistance with overseas transactions and helps with the acceptance of overall customer payments.
Type Three: Investment Banks
These types of banks assist businesses to work within the financial side of the market instead of the commercial. If a customer’s company is interested in going public, or selling off their debt to investors, they will use an investment bank.
Type Four: Central Banks
Money managed for the government is referred to as the central banks. The United States Federal Reserve, for example, is the central bank that is responsible for organizing and managing economic activity within the country. It is also in charge of supervising bank activity as a whole.
Type Five: Credit Unions
While not actually banks, credit unions follow a slightly different vein. They are considered to be a not-for-profit type of organization that is overall owned and managed by their customers. This isn’t anything unusual as most banks are held by the investors that put their money into it.
Credit unions have the ability to offer opportunities that are very similar to most commercial and retail banks. However, the members of a credit union share similar characteristics. They often live in a similar location, have similar jobs, or even belong to the same organizations.
What Type Of Bank Is Right For You?
After reading through this article, does it help you to better understand what type of investment you need to make? Choose the bank that will meet your needs.