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Fdicgovand250000for certainretirementaccounts

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Unformatted text preview: tutions Commercial banks are corporations that offer a full range of services including checking, savings and lending Savings and loan associations specialize in savings accounts and mortgage loans Credit unions are user­owned and nonprofit and typically pay higher interest on deposits and charge lower rates on loans 28 Types of Financial Institutions Non­deposit type institutions Life insurance companies offer insurance plus investment and retirement planning Brokers/mutual funds offer a money market fund Finance companies make personal loans Mortgage companies lend for home purchase Pawnshops make loans on possessions Check­cashing outlets charge 2­3% Title and payday loan companies ­ high interest 29 How Safe Are My Savings Federal programs to protect investors FDIC and NCUA insures bank and credit union accounts up to $250,000 per person per financial institution (see www.fdic.gov) and $250,000 for certain retirement accounts Direct investments with the US treasury are risk free from default 30 Money Market Mutual Funds and Safety...
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