What are the different types of banks?Answer
YP AnswersThere are four primary types of banks: Commercial, consumer, private, and investment:
- Commercial banks are where most people have their checking and/or savings accounts. Their primary business is taking assets and deposits, lending it to other customers, and making money off of the loan’s interest rates. They also charge fees on checking and/or savings accounts.
- Consumer banks, such as a credit union, generally focus on the personal needs of a specific group or industry, like an auto workers credit union. They offer the same services as commercial banks, but the idea behind credit unions is to support and cater to a specific group of customers.
- Private banks primarily deal with high net worth individuals, and/or those with sizeable assets, and help them with investments, banking and other services.
- Investment banks deal primarily with businesses to sell bonds, acting as a conduit between the investors (those folks putting up the money) and the business (those folks borrowing the money).
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