Chapter 23 Section 1

23.1 A bank used to be the place to go to save money, borrow money, or open a checking account. Today, four major types of financial instutions provide these services and others.

Commercial Banks Full-service banks are banks that offer customers a full range of financial conviences and services These include checking and savings accounts, loans, safe deposit boxes, credit cards, drive-up windows, money orders, travelers checks and automated teller machines, or ATMs.

Mutual Savings Banks Mutual savings banks began early in the 19th century in order to serve ordinary people that commercial banks often overlooked. Such banks generally provide the same services as commercial banks

Savings and Loan Associations Other names for these institutions are building and loan associations, cooperative banks, savings associations, and homestead associations. They were started in the early 1800s by groups of people who pooled there savings so that each person, in turn, could borrow enough money to build a house

Credit Unions Credit Unions aka CUs are non-profit savings and loan cooperative associations. CUs provide savings accounts, consumer loans, and financial counseling.

checkpoint 1. There are 4 major types of financial institutions. Name and briefly describe them. 2. Name and briefly describe the five types of EFT services