You are in need of a new bank account because you are starting a business or you want to start investing. Well, this is a point where you need to take some time out and actually research. There are many types of banks and they have different functions. For you to know the bank to go for, you need to understand the types and their functions. Not to worry though, because we got you covered.
Central bank
These are the biggest in a country or nation. You can call it the head bank. It manages money supply, supervises commercial banks. They are the ones that set the rates and the overall flow of currency. For example, in America, they have the Federal Reserve Bank as the central bank.
Commercial banks
Commercial banks focus more on businesses. If you want an account for your business, then this is where to go. It doesn’t matter if your business is small or big, you can open your account and you can even go there for business loans. They will gladly lend you the money, as long as it is for business purposes.
Retail banks
These banks are there for the public, in general. It’s not about business only, but for everything. Anyone who needs an account, loans, and insurance, you can get it there. And for forex traders, you can also get credit cards that you can use as your payment methods.
Investment banks
If you are looking for a bank that can give you financial guidance as an individual, as well as a company, then this is the bank for you. Investment banks manage what goes on between companies and investors; it manages investment portfolios just like forex trading. They also oversee the trading of stocks and bonds. Not only that, but they also manage securities between companies and their investors. This bank is the way to go because it has a lot of things they offer to both individuals and companies.
