A bank is a financial institution that is backed by the Federal government. Banks insure their customers “deposits” up to 100 hundred thousand dollars. Banks offer typically all the same services to some degree. Of course your larger banks offer more of a variety of general services.
“Services Typically Offered”
– Checking Accounts: Most banks offer at least two types of accounts, where larger banks can offer up to eight different accounts. Some accounts offer an interst rate, while others can be combined with a savings account or IRA’s.
– Savings Accounts: You have your traditional saving account (where you deposit the desired amount of money, when you want to.) Another type of savings account is when the bank transfers the money ( you specify how much) from your checking account on a specific day of each month. Christmas Club’s are considered savings accounts also. Most but not all savings accounts offer a low interst rate.
-Loans: Personal, student, automobile, home, equity, home improvement and small business loans are offered. Interst rates vary from each type of loan, from bank to bank.
Debit Cards: With a checking account you can get (usually) a free debit card.
Credit Cards: Every bank offers a line of credit in the form of a credit card.
Pre-paid Credit Cards: Are becoming very popular and are offered at a lot of banks for minimal fees of under $5.00, some are re-loadable for another fee.
CD’s: (Certificate of Deposit) Generally, you must open a CD with at least $500.00 and keep it for a minimum of 8 months, the longer you keep it the higher the interst rate.
Mutual Funds: (Buying in to a lot of companies for a higher rate of return, holds a small risk of losing some money. Good for long term savings.
College Funds: Also known as the 529 plan. Earns interst and tax free.
Trust Funds: There are numerous trust funds available, estate, business, minors, disabled persons and for the elderly etc…
Philanthropic Management: A management team that helps wealthy people donate some of their funds to charity’s or private parties.
Insurance: Offers every kind of insurance from home, health, car and life.
Wire transfers, money orders, travelers checks, cashiers checks and bank drafts.
Many larger banks also offer “Community Development” center, which helps low income family to buy a home.
This is a list of the most common things a United States bank offers to it’s customers. Each bank is different and the services will vary slightly.