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What kind of insurance do thrift institutions provide that is not provided by commercial banks? Would...

What kind of insurance do thrift institutions provide that is not provided by commercial banks? Would you switch to a bank just because they are paying a higher interest on deposits?

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Answer #1

Thrift Institutions basically accept public deposits and make home mortgages. These include mutual banks, thrifts and loan associations. They pay out more in dividends as compared to the commercial bank. Thrifts are more community focused. Thrifts provide depository insurance.

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Along with a higher interest rate, customer services and security is very important. A customer looks for a bank that caters to their need in quick time and the bank should have reserves to repay their deposits on time.

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