What types of banking are there

Although they do not have physical branches to visit, online banks still offer plenty of customer support through online channels. Your bank account is the core of your financial well-being. Consider some of the following when selecting a bank:. Do they offer you the financial products you need whether that be an account, loans, credit cards, or financial advisors? Ask them for a referral. Looking for other ways to save money?

Please refer to our terms and conditions for more information. Membership Become a member. Check FAQs Contact us. About Press Careers Terms and conditions Privacy policy. Language English. Banking What are the Different Types of Banks? A bank is a bank no matter where you go, right? Not quite. What are the different types of banks? Retail banks 2. Credit unions 3. Retail banks Retail banks are the ones with which most consumers are familiar, like Bank of America, Wells Fargo, or Chase.

Banks belonging to a chain usually have branches located across the entire United States. Measure content performance.

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Their main function is to discount, accept and collect foreign bills of exchange. They also buy and sell foreign currencies and help businessmen to convert their money into any foreign money they need. Their share in the internal trade of a country is usually small.

In addition, they carry on ordinary banking business too. There are a few industrial banks in India. But in some other countries, notably Germany and Japan, these banks perform the function of advancing loans to industrial undertakings. Industries require capital for a long period for buying machinery and equipment. Industrial banks provide this type of Mock capital. Industrial banks have a large capital of their own.

They also receive deposits for longer periods. They are thus in a position to advance long-term loans.

Its activities have since then been greatly enlarged. Further the States have also set up State Financial Corporations. These new institutions fill important gaps in our system of industrial finance.

The main business of agricultural banks is to provide funds to farmers. They are worked on the co-operative principle. Long-term capital is provided by land mortgage banks, nowadays called land-development banks, while short-term loans are given by co-operative societies and co-operative banks.

Long-term loans are needed by the farmers for purchasing land or for permanent improvements on land, while short-period loans help them in purchasing implements, fertilizers and seeds. Such banks and societies are doing useful work in India. These banks perform the useful service of collecting small savings.

The idea is to encourage thrift and discourage hoarding. Post Office Saving Banks in India are doing this useful work. Over and above the various types of banks mentioned above, there exists in almost all countries today a Central Bank. It is usually controlled and quite often owned by the government of the country.

An efficient banking system is absolutely necessary for a country, if it is to progress economically.