What About Banking?

All you ever wanted to know about BANKING!

bank·ing

ˈbaNGkiNG/

noun

1. the business conducted or services offered by a financial institution licensed as a receiver of deposits 

   "with this account, you are entitled to free banking"
2. .

When you think of a bank, the first thing that comes to mind might be the place that holds your checking account. But there are several different types of banks, all serving different types of customers.

You might not have heard of all of these banks, but each institution probably plays some part in your everyday life. Different banks specialize in different areas, which makes sense – you want your local bank to put everything they can into serving you better (and online banks can do their thing without the bother of managing multiple branch locations).

Types of Banks

Some of the most common banks are listed below. Some banks work in multiple areas (for example, a bank might offer personal accounts, business accounts, and even help large enterprises raise money in the financial markets).

• Retail banks are probably the banks you’re most familiar with: your checking and savings accounts are held at a retail bank, which focuses on consumers as customers. Learn more about retail banks.

• Commercial banks focus on business customers. Businesses need checking and savings accounts just like individuals do, but they also need more complex services. They might need to accept payments from customers, rely heavily on lines of credit to manage cash flow, and they might use letters of credit to do business overseas. Learn more about commercial banking.
• Investment banks help businesses work in financial markets. If a business wants to go public or sell debt, they’ll use an investment bank. Learn more about investment banks.
• Central banks manage the monetary system for a government. For example, the Federal Reserve Bank is the US central bank responsible for managing economic activity and supervising banks. Learn more about central banks.

• Credit unions are similar to banks, but they are not-for-profit organizations owned by their customers (most banks are owned by investors). Credit unions offer products and services more or less identical to most retail and commercial banks. Learn more about credit unions.
• Online banks operate entirely online – there are no physical branch locations to talk with a teller or personal banker. Many brick-and-mortar banks also offer online services, such as the ability to view accounts and pay bills online, but internet-only banks are different: they often offer competitive rates on savings accounts and they’re likely to offer free checking. Learn more about internet-only banking.

• Savings and loans are less prevalent than they used to be, but they are still important. This type of bank was important in making home ownership mainstream, using deposits from customers to fund home loans. Learn more about savings and loans.

Depending on your needs, you might not ever have direct exposure to some of the banks listed above. However, it’s wise to at least have a bank account for your personal needs (see Why you Need a Bank Account), and if you run a business it’s essential to separate your personal and business finances with a business account.

click on the link above "BANKING" to open a shared document. You will need to make a copy of this document to your DRIVE so that you can EDIT it. Begin to fill in the information as you find these answers on the internet--Banking Scavenger Hunt