Bank

Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC for short) was created to ensure the safety of customers' money.

This is an organization that commercial banks can become a member of. The purpose of its creation is to ensure the safety of funds of banks' clients.

In simple words, banks pay for their membership in the FDIC, and if any bank goes bankrupt, the FDIC covers payments to its clients.

Such organizations work in many countries around the world. Usually when clients choose a bank to invest in or for other types of cooperation, they pay attention to whether the bank is a member of the Federal Deposit Insurance Corporation.

In times of crisis, especially in times of global financial crisis, when there is a risk of bankruptcy of a large number of banks, insurance agencies such as FDIC are under increased pressure. This often becomes an occasion for speculation and manipulation.

Certificate of Deposit

Certificate of deposit is a document that can be issued by banks, credit unions, and other institutions. It works like a savings account but doesn't involve withdrawing and replenishing.

Certificates of deposit are often viewed as an alternative to bonds thanks to their stability and predictability.

Types of Bank Accounts

• Checking account. This is a type of deposit account. It can be opened either online or offline. In short, it is designed for holding funds that a customer is about to spend. They are also useful for holding funds that are used to pay bills on a regular basis. In most cases, a checking account comes with a debit card. In this way, it is possible to make purchases or withdraw money.
• Savings Account. It is designed for customers willing to save money and earn interest. Typically, interest rates are pretty low. Savings account is used when a customer doesn't need money now but will need it in a year or some other period of time.

• Commercial banksCommercial banks are all banks except for investment banks. They operate for profit by providing lending services, accepting deposits, money exchange and others.
• Private banks. Private banks. They are focused on serving individuals who have high incomes and a wealth of more than $1 million. Such organizations experience great competition from traditional banks, so they are reducing the requirements for customers. For example, now a person whose net worth is only 350 thousand dollars can become a client of a private bank.
• Offshore banks.Offshore banks. These are organizations that are located in offshore zones. This is done in order to pay less taxes. Also, the advantage of being located offshore is that there is no strict regulation. In many cases, the clients of offshore banks are politicians, entrepreneurs, and other celebrities who live in countries with unstable economies. This allows them to avoid declaring their income and pay less tax. The media regularly publishes articles on scandals involving offshore banks. But in terms of local law, their activities are legal.
• Central banks.Central banks. Usually the central bank is the main bank of the state. It has the right to issue and control the turnover of money, which is the means of payment in a particular state. In case of any financial turmoil, the function of the central bank is to provide liquidity, to support troubled banks and the economy as a whole.
• Islamic banks. This is a type of financial commercial institutions which adhere to Islamic law. One of their features is that they don't give money at interest, because this kind of relationship is forbidden by Islam.

• Offshore banks. These are organizations that are located in offshore zones. This is done in order to pay less taxes. Also, the advantage of being located offshore is that there is no strict regulation. In many cases, the clients of offshore banks are politicians, entrepreneurs, and other celebrities who live in countries with unstable economies. This allows them to avoid declaring their income and pay less tax. The media regularly publishes articles on scandals involving offshore banks. But in terms of local law, their activities are legal.
• Central banks. Usually the central bank is the main bank of the state. It has the right to issue and control the turnover of money, which is the means of payment in a particular state. In case of any financial turmoil, the function of the central bank is to provide liquidity, to support troubled banks and the economy as a whole.

• Commercial banks are all banks except for investment banks. They operate for profit by providing lending services, accepting deposits, money exchange and others.
• Private banks. They are focused on serving individuals who have high incomes and a wealth of more than $1 million. Such organizations experience great competition from traditional banks, so they are reducing the requirements for customers. For example, now a person whose net worth is only 350 thousand dollars can become a client of a private bank.

Bank is an organization that provides various financial services to individuals and legal entities.

Banks play an important role in public life. They directly support the economy by providing loans.

The most popular services offered by banks are loans and deposits.

Banks can be private or public. They have been known since ancient times.

There are different types of banks: