Investing in Cash

Banks and Credit Unions

What is a “bank”?

A bank is a financial institution licensed by the government that provides a variety of financial services, including: accounts in which to save (savings accounts, retirement accounts such as IRAs and 401(k)s, and certificates of deposit), spending accounts (checking accounts, debit cards, and ATM cards to make transactions), and loans (mortgage, equity, car). These institutions are profit-making entities that seek to give the highest possible return on investment to its investors, who can be both those who initially created the bank, and in the case of publicly traded banks, those who invest in ownership of the banks by purchasing its stock or shares.


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