Choose Wisely!

Have you ever stopped and thought about which bank you would like to use? That is, if you want a different one from your parents. In order to choose which bank I wanted to go to, I had to do some research.

First of all, banks are divided into two types: commercial banks and credit unions. A commercial bank is a depository institution, or bank, that is used only to make a profit. A credit union is a not-for-profit depository institution owned by the members. Normally, a credit union has members that have a similarity between them, for example, the members all farm or work in a factory. If you don’t have a common bond between members at a credit union, that may not be the depository institution for you. Most people choose to go to a commercial bank because that is the most popular type of banking method, but others try to find a credit union they can go to. Credit unions typically have higher interest rates on savings tools and may have lower interest rates on loans than commercial banks.

When making a decision on where you put your money, I suggest you first figure out what kind of a depository institution it is and then decide if the location of the bank is convenient for your needs. You also want to make sure the depository institution is insured - you want your money to be safe! For additional information, you should check to see if the financial institution has a website. If they do have a website, it may tell you more about the financial services they provide. 

Now that you know all of this, has your perspective changed about choosing a bank? Try asking your parents if the bank they use is convenient for their needs and if it’s insured. If they answered no to one of those questions, then share the information you learned with them! Whichever decision you make, remember to choose wisely!


 

Student Editor: