Types of Banks

You may hear of different types of banks: investment banks, retail banks, commercial banks, online banks, and others. What do all the words mean? Different types of banks specialize in different lines of business. See the basics on each type of bank.

Credit Unions – Overview of Credit Unions
Most people never notice the differences between credit unions and banks. However, as an educated consumer looking to get the best deals (that is you, right?) you should know how the institutions differ. By reading these fast facts about credit unions, you’ll know what to expect.

What is the Central Bank?
A central bank is an organization responsible for managing banking activity. Within the USA the central bank is the Federal Reserve, or ‘the Fed’. Other countries have central banks as well. Most consumers do not interact with the central bank. Instead, large financial firms generally work with the central bank in the background.

What is an Online Bank?
Online banks are banks that you primarily (or exclusively) use on the Internet. They allow you to have more choice and flexibility. You can do things on a computer, and you often get more competitive rates from online banks. Online banks provide services to individuals and businesses. Your brick-and-mortar bank may also offer online banking and special offers that are only available online.

What is an Investment Bank?
Investment banks help organizations use investment markets. For example, when a company wants to raise money by issuing stocks or bonds, an investment bank helps them through the process. Let’s take a look at the basics of investment banks.

What is a Commercial Bank?
A commercial bank is a bank that works with businesses. Businesses have unique needs that consumers don’t have. For example, some businesses need a commercial bank that can accommodate a large volume of credit card payments and cash deposits. Let’s take a look at the basics of commercial banks.

What is a Retail Bank?
A retail bank is a bank that works with consumers, otherwise known as ‘retail customers’. Retail banks are the banks you most often see in cities on crowded intersections, the ones you probably use for your personal checking account. Let’s take a look at the basics of retail banks.

Mortgage Crisis Overview
In 2007, the US economy entered a mortgage crisis that caused panic and triggered other financial problems. The mortgage crisis was a result of too much borrowing and flawed financial modeling, largely based on the assumption that home prices only go up. Greed and fraud also played important parts. Let’s review how the mortgage crisis unfolded.

FDIC Insurance
FDIC insurance protects you from losses if your bank goes belly-up. You think of the bank as a very safe place for your money, but banks loan your money out and invest it in a variety of ways. If those activities go sour, what happens to your money? This page discusses how FDIC insurance protects customers.

Annual Percentage Yield – APY
Annual percentage yield (APY) is a tool for evaluating how much a deposit earns you. Here you’ll find out what is unique about APY, how to calculate it, and how to get the best APY.

Your FDIC Coverage
FDIC coverage can be complex. It is important that you keep all of your money insured in case your bank goes under. You can use a variety of tricks and services to stay within FDIC coverage limits. Let’s review what you can do, and how to make sure you’re properly using FDIC coverage.

How to Get a Bad Auto Loan
Getting an auto loan is a confusing and intimidating process. To get the best auto loan, you need to avoid mistakes. This page covers some of the easiest and most costly mistakes that you should avoid when shopping for an auto loan.

CD Basics – How CDs Work
Certificates of Deposit (CD’s) are one of the safest investment vehicles out there. Learn how they work, how to get the best CD rates, and what pitfalls to watch out for.

CD Interest Rate Scorecard
The CD Interest Rate Scorecard highlights some of the leading CD interest rates. It is most useful for a quick answer on where to stash your cash. If you really want the best rates, you can start here and continue on for even better deals.

How to Get the Best CD Rates
Certificates of Deposit (CD’s) are among the safest investment vehicles out there. To get the best CD rates, you have to know where to look and what to do. This page helps you find the best CD rates available.

CDARS – Certificate of Deposit Account Registry Service
CDARS stands for Certificate of Deposit Account Registry Service. CDARS is a program that allows you to spread your money among various banks, usually to stay below FDIC insurance limits at any given bank. CDARS is a way to have somebody else manage the risk of bank failures for you.

Is My Bank in Trouble?
Is your bank safe? Banks are supposed to be a safe place for cash. However, you may wonder if your money is really safe. How can you tell if a bank is in trouble? Let’s review how you can ensure that your money is in a safe place.

Failed Institution Protection
Sometimes financial institutions fail. If your money – a savings account, 401k, or investment account – is with a failed firm, you might wonder if it’s safe. Will you lose everything? For most people, the answer is no. Let’s look at the safeguards available to protect your money when a financial institution fails.

Bank Runs
Bank runs occur when customers flock to the bank to grab their cash. They are caused by a fear that the bank will fail before customers can get their assets out. Here’s a look at how bank runs work and why they happen.

How to Find the Best Savings Account
When shopping for a savings account, you need to find a bank that will give you a good deal. The best savings accounts are safe, pay a competitive yield, and make your life easy. This page maps out how you can find the best savings account.

HSA Providers
Almost any insured bank or credit union can be your HSA provider. If they can offer an IRA (individual retirement account) they can offer an HSA. However, that doesn’t mean they have to offer HSAs. This page provides an overview of HSA offerings and listing of HSA providers.

Information Stored at Credit Reporting Companies
Credit reporting companies are like information warehouses. They collect information that might be relevant to prospective lenders. This page details the types of information stored at the credit reporting companies.

ING Direct – Banking Reviews
This review covers the ING Direct online savings account. Learn the basics about the ING Direct offer, and find out about any extras.

How to Ruin Your Credit
Having access to other people’s money is overrated. If you’re of the same mind, you may want to completely eliminate any chance of somebody lending you money. Here are some tips on how to destroy your credit score.

How to Fix Your Credit Report
In order to get the best loan rates, sometimes you need to fix your credit report. For a variety of reasons, credit reporting agencies may have bad information. To fix your credit report, follow these simple steps. Then go back and get the loan terms you deserve.