What are the four types of depository institutions?

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The three main types of depository institutions are:

  • Commercial Banks: Offer services like checking & savings accounts, and loans.

  • Thrifts: (Savings & Loan Associations/Savings Banks) Focus on mortgages and savings.

  • Credit Unions: Member-owned, nonprofit institutions providing similar services.

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What are the 4 main types of US depository institutions?

Okay, so I’ve always been a bit fuzzy about this finance stuff. But I think I’ve got the main idea.

Basically, there are these places, right? Where you put your money. And they’re different, which is kinda confusing.

There are banks, like the one I use – Chase, downtown, got my checking account there since, like, July ’22. Then there are these things called thrifts, which I kinda thought were banks? Apparently, there’s savings and loan places in there, and savings banks. Never really used one. Last time I went into a Chase branch was last Wednesday, took out $60.

And credit unions. My sister joined one for a car loan back in May, said the rates were better. Something about being member-owned? I dunno. It’s a bit of a muddle to me. They’re all places to keep money, but somehow different.

Three main types of US depository institutions: commercial banks, thrifts (savings and loan associations and savings banks), and credit unions.

#Banktypes #Depositorytypes #Financialinstitutions

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