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Commercial Banks | Savings Banks / S&Ls | Credit Unions | Other Options
For most people, there's not much difference between banking at a traditional commercial bank, savings bank, or S&L (Savings and Loan). Most banks offer check and savings accounts, ATM cards, CDs, loans, and investment services.
Commercial banks provide a full range of banking services, from basic personal checking to major business loans.
Commercial banks usually have multiple, well-located branches and world-wide electronic links.
However, the fees for checking accounts and other services are generally higher than other banks.
Customer service is often impersonal.
savings banks and savings and loans associations (s&ls;)
Savings banks provide most of the same services as commercial banks.
Savings banks and Savings & Loan fees may be lower than at commercial banks.
Personal service may be better, especially at the smaller, local banks.
They may be open evenings and Saturdays.
Savings banks may require you to notify them before you take money from your checking account -- though they usually don't.
Most have only a few branches.
Unions and other organizations often set up credit unions to provide banking services for their members.
Credit union account fees and loan rates are usually lower than those at banks because the organizations are not-for-profit.
Earnings are paid out to members at year's end, further reducing the cost of banking.
Checks -- called drafts -- aren't returned to you; instead you keep a carbon copy for your records.
Not all credit unions are federally insured.
Increasingly, other financial institutions have gotten into the banking business.
These "alternative banks" offer limited banking services: low-cost or free savings and checking often coordinated with investing. Money in the checking account usually earns interest. Tax-exempt accounts may also be available.
Most of these accounts require minimum balances, and may limit either the number of checks per month, or the amount per check. Money in the accounts is not FDIC-insured but may be protected by private insurance.
Private banks provide full-range, individualized financial services, including banking, to affluent clients. A personal representative handles all your banking needs, including loan authorizations.
You may need substantial assets to qualify for the full range of banking services. You're usually expected to generate investment fees and/or pay a minimum annual fee.
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