Whenever someone has a windfall of money, finding a safe and liquid place until they’re ready to invest is impervious. While banking products should never be considered investments, they do play a role in everyone’s day-to-day financial affairs.
Types of Banking Products
There are a variety of banking products to choose from including:
- Checking accounts;
- Savings accounts;
- Certificates of Deposit (CDs); and
- Money market accounts.
Types of Financial Institutions
Although the majority of people have heard the different types of financial institutions, several might not know the differences between each.
Banks are insured by the Federal Deposit Insurance Corporation (FDIC) for deposits up to $250,000 and regulated by the Federal Reserve. However, credit unions are insured for deposits up to $250,000 by the National Credit Union Share Insurance Fund (NCUSIF) and regulated by the National Credit Union Administration (NCUA).
With so many banking products to choose from, it’s important to know the differences between each as well as the time commitment.
