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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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This document was uploaded on 02/12/2014.
- Spring '14