LASA: Finding Your Best Bank

Running Head: FINANCE 1

FINANCE 4

FINANCE

Name

Institution

· Differentiate between a bank and a credit union.

A bank is financial corporation whose main aim is to make profits to be paid as earnings to stockholders while credit unions are non-profit financial cooperatives which aim at giving financial services to its members at favorable conditions and whose earnings are paid to the members in terms of low rates of loans or high savings rates (Ayadi et al, 2017).

· Consider your own financial situation. Explain what financial institution is better suited for your financial position and explain why.

I am not very well off financially and a credit union would work perfectly for me. This is because it offers loans at lower interest rates and I will gain more for my savings than I would in a bank (Mukherjee et al, 2017).

· Identify a credit union in your area of residence that you may be eligible to use. If one is not available in your locality, you may choose one available online. State the eligibility requirements you may or may not meet for this credit union. Consider you have established a hypothetical relationship with a credit union. Explain how you would use the union to best plan your finances.

I would choose my relationship with California Credit Union to enable me to save as I have been with them for many years since moving to Georgia. Credit unions encourage its members to save and earn money from their savings. I would have to cut some of my luxuries and save with the credit union.

California Credit Union. https://www.ccu.com/

Offers savings and credit services. Some loan rates are as low as 2.99%. Savings rates are at about 2.33%.

JPMorgan Chase Bank https://www.usbanklocations.com/jpmorgan-chase-bank-california.htm

Offers both savings and loan services. It also offers international banking services. The savings rates are 0.72%.

First Republic bank https://www.firstrepublic.com/locations/San-Francisco/Laurel-Village

It offers savings, credit and financial advice among many more banking services. It has savings interest rates of up to 0.55%.

References

Ayadi, R., Keoula, M., Pieter De Groen, W., Mathlouthi, W., & Sassi, I. (2017). Bank and Credit Union Business Models in the United States.

Mukherjee, A. K., Korah, S. C., Bhatt, S. R., & Krishnamoorthy, S. (2017). U.S. Patent Application No. 15/685,627.