Confused as to what a retail bank is? When it comes to financing we know that there can be a lot of tricky terms to grasp. If you want to expand your knowledge and figure out more information on retail banking then this post will hopefully educate you on all that you need to know!
What is a Retail Bank?
A retail bank, also referred to as a consumer bank, is a bank that offers basic banking services such as checking and savings accounts, mortgages, loans, and more. Rather than working with with institutional customers like corporations and/or financial institutions, retail banking is focused on retail consumers that are taking care of more personal needs.
Retail Banking Services
The services of retail banking make it easier for you to handle everyday financial needs as well as larger milestones like buying a car or a house. Retail banking incorporates a wide scope of banking services that belong in similar categories like savings and checking accounts, consumer lending, credit and debit cards, mortgages, e-banking services, insurance, investment and fund management.
One category that’s included in retail banking is bank accounts. This includes checkings, savings, and retirement accounts. You may be familiar with a checking account as it comes with a debit card that allows you to make purchases and pay for bills online and electronically. Money market accounts vary in the way that they pay slightly more and come with a few restrictions on how often you can spend money.
Certificates of deposit, also referred to as CDs, offer more that a savings account. However, it is advised that you don’t touch your money for several months to avoid early withdrawal fees.
You may have heard about safe deposit boxes that store small valuables within bank walls. This way you can keep these possessions safe where they can’t be stolen or damaged.
Loans can come in various forms. The first kind of loan is a home loan that helps people purchase a house. This comes hand-in-hand with second mortgages which allow borrowers to refinance their existing loans and remove cash from home equity. Auto loans work to help people but cars. Unsecured personal loans are ones that do not require collaterals.
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Bottom Line
Retail banking services exist to help people handle their finances. While it is possible to survive without an account, it makes life easier.
Hopefully this post has been able to help you learn all about retail banking and the different kinds of services offered. If you’re interesting in learning more about banking then make sure to check out our Bank Bonuses, Saving Rates and Credit Card Bonuses!
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