Banks are the best place to save your money for your child’s future. To survive after retirement or to fund for your children education, you need to be mighty at saving money. There is no better place other than banks to save your earnings. Moreover, they have become a part of human life. This banking system renders all the financial services to the global customers.
There are different types of banks available today and each bank caters with different services to meet the needs of the customers. For instance, the commercial banks accept deposits and offers loans whereas mutual saving banks handle deposits from the customers and even offer loans. Moreover, the credit union banks will issue the share certificate to the shareholders and offers different types of loans.
Here are a few different types of banks that are explained in brief along with the products and services offered by them.
Retail Banks:
These banks render all types of basic banking services to the customers. List of services provided by them include saving accounts, provides mortgage loans, provides lockers to deposit money or gold, accepts fixed deposits, offers certificate of deposits, etc.
Commercial Banks:
Banks not only stock money of the public, but also lend them money in the form of loans. Commercial banks offer credit cards, debit cards, open bank accounts, accept deposits, and provides secured and unsecured loans to the customers. However, as a result of deregulation, the commercial banks are competing with the investment banks in bond underwriting, money market operations and advisory works. These people are serving as the mediators between the lenders and borrowers. They take the deposits from the people and lend the money to the borrowers for a low interest rate.
The public and private banks fall under commercial banks. In public banks, the government has major share, so these banks work more for the public welfare than profits. The private banks are operated by the private people and they have ample freedom to operate as per the market.
Investment Banks:
This financial institution will provide assistance to the people, organizations and government companies for raising funds by providing them indemnity. These banks even offer other services such as foreign exchange, commodities, trading, etc.
Cooperative Banks:
These are handled by the state Cooperative societies. They provide rural credits to the customers at a low interest rate.
Specialized Banks:
These banks approve loans to the industries to expand their business.
Central Banks:
These banks play a crucial role in maintaining the economy of the country. The bank is indulged in various functions such as enforcing financial policy, managing foreign exchange, gold reserves, and in taking informed decisions in setting the interest rates. Overall this bank supervises the government banks and other banks.