Post on 24-Dec-2015
There are 3 types of financial institutions available for Canadians:
Banks Trust Companies Credit Unions
Banks
Collect money through deposits and lend money through loans
Offer a wide variety of services to individuals and business owners
There are federal rules banks must follow
Banks
Usually, banks are large, federal or international corporations
Because of this, they can usually offer better interest rates
Banks are businesses – the profits go to the shareholders, not the customers
Trust Companies
Trust companies are not very common in this area
Collect money through deposits, lend money through loans, but cannot lend to businesses unless they meet specific criteria
Can act as a trustee – in charge of someone’s account
Trust Companies
Offer a variety of services, usually to a specific group (often the rich)
Can follow federal or provincial rules, depending on the location
Trust Companies
Smaller than banks
Because of this, their interest rates are usually not as good as banks
Credit Unions
Set up for a specific group of people – usually based on location, ethnic background or employer / occupation
Deposit-taking financial institutions that offer many other services
Often able to do small loans, but not large ones