Are you thinking of switching to a new bank?
There are several different types of banking available. You may also be accustomed to one specific type of banking, and considering change could be daunting.
This short and straightforward guide answers all your questions about the different types of banking. Be sure to glance at this complete guide to find out which type suits you best.
Different Types of Banking
There are many different types of banking, from small community banks to large international banks. Here is a guide to the different kinds of banking:
1. Commercial Banking
A commercial bank is the most common type of bank. They offer various services, including savings and checking accounts, loans, and investment products.
2. Investment Banking
Investment banks focus on providing capital to businesses and individuals. They offer various services, including stock and bond underwriting, merger and acquisition advisory, and investment banking.
3. Private Banking
Private banks to the banking needs of wealthy individuals and families. They offer a full range of banking services, including investment management and trust services.
4. Community Banking
These local banks focus on serving their communities’ banking needs. They offer a wide range of banking services, including savings and checking accounts, loans, and investment products.
5. Online Banking
These are new banks that operate primarily online. They also offer savings and checking accounts, loans, and investment products.
6. Infinite Banking
A newer type of banking allows customers to have more control over their money. Learn more about the infinite basics here.
This can be a great way to build up savings and make money work for you rather than the other way around. If you’re looking for a more modern and flexible banking system, infinite banking may be the right choice.
Difference Between Savings Account and Checking Account
There are many different banking accounts, but savings and checking accounts are the most common.
A savings account is an account that you use to save money. A checking account is an account that you use to manage your day-to-day finances.
What Is a Money Market Account?
A money market account is a type of banking account that offers higher interest rates than standard savings account but with some withdrawal restrictions. Money market accounts are a good option for people who want to earn a higher return on their money but still have the flexibility to access their funds.
What Is a Certificate of Deposit?
A certificate of deposit is a savings account with a set interest rate and withdrawal date. The most significant benefit of a CD is that it offers guaranteed returns.
That means you know exactly how much money you’ll have at the end of the term, which can be helpful in budgeting and financial planning. CDs also tend to have higher interest rates than traditional savings accounts so that you can grow your money faster.
The Beginner’s Guide to the Different Types of Banking
There are many different banking types, from online to investment banking. This guide has outlined the different types of banking so that you can make an informed decision about which type of bank is right for you.
When deciding on your banking, consider your needs and financial goals.
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