financial institution

A financial institution is a company that deals with money, such as a bank or credit union. These institutions act as financial intermediaries, connecting those with excess funds (savers) to those who need to borrow money (users).12

There are several types of financial institutions:
* Commercial banks are typically for-profit and offer services like savings and checking accounts, as well as various loans to individuals and businesses.34
* Credit unions are not-for-profit and are owned by their members. They often offer more favorable interest rates than banks but may have membership requirements.5
* Investment banks assist corporations and governments in raising capital through stocks and bonds and provide advisory services.34

Both banks and credit unions are generally protected by federal insurance, such as the FDIC for banks and the NCUA for credit unions, up to $250,000 per depositor.54