What is a consumer bank?

Consumer bank is any bank that receives deposits, offers services such as providing private loans to individuals, and allows you to contact between a person at a specific location called a branch. Basically, any bank you enter, to store payouts, is a consumer bank. The deadline concerns the fact that the bank has a physical location or branch and the fact that it serves individual customers. Individuals can also be called retail banking instead of enterprises.

The consumer bank is in fact a relatively new phenomenon in the history of banking. Most banks were originally built to serve businesses and countries. They were not examples of consumer bank because they normally did not provide individuals' services unless you were extremely rich and your deposits funded some aspects of the bank's business effort. Only in the middle of the 18th century banks began to see the value of offering accounts and safe deposits for the average person.

One hundred did not help. They were careful to place their money in the hands of others, and worry about what would happen if the bank failed. Such events occurred from time to time, and instead some people hid their money or even "stuffed mattresses" to avoid someone else's care.

Several types of consumer banks have evolved, such as Cooperative Backup and Savings and Rental Companies. In particular, some people preferred the credit union because they were "owned" to some extent people who put money into them. Anyone who is familiar with the classic Christmas movie is a great life is likely to remember the scene where the run on the building and loan George Bailey and the local city bank. As George Bailey tries to explain to people who are worried about their money has invested throughout the city in loans to other people, but some Peole still demands their PEIt was George and his wife their honeymoon.

For a long time, there was a fear of consumer bank for people, because there was no warranty that if the bank collapsed, sometimes they saw their money again. This is no longer true for most of the consumer types of banks today. Most of the US bears insurance on your deposits, from Federal Insurance Insurance Corporation (FDIC). When FDIC supports a consumer bank, up to $ 100,000 of your money is insured in the case of bank collapsing. As financial experts warn, if you have more than this amount, it is better to have no more than this amount in one bank.

In recent years, for example, the development of so many different ways of banking, through the Internet, ATMs and phones, many branches of retail banks have closed. This can be irritating to people when they need to talk to a real person or perform a banking company that can only occur in person. However, some banks have noticed that not liceChi Customers are pleased when branches are closed and invested money in opening more branches so that customers have more opportunities to carry out their banking.