Definitions of Financial Institutions

Not sure what the different types of financial institutions are?

Banks

Community development banks are for-profit banks dedicated to advancing economic development in areas with people who earn low to moderate incomes and who are under-served by traditional financial institutions. Make sure your bank is federally insured: FDIC.

 

Credit Unions

Community development credit unions are credit unions dedicated to advancing economic development in areas with people who earn low to moderate incomes and who are under-served by traditional financial institutions. A credit union differs from a bank in that it is a not-for-profit co-operative and serves a particular constituency or membership, such as people in a certain geographic area or people in a certain profession. Make sure your credit union is federally insured: NCUA

 

Loan Funds

Community development loan funds are usually not-for-profit organizations that provide loans and support services to businesses, groups, and individuals in low to moderate income communities. Most community development loan funds are focused on one or more of these areas: micro-small business, affordable housing, and community service organizations. Community development loans funds are uninsured (you are not insured against any losses of your deposits).

 

Credit Cards

Credit cards issued by community development banks or credit unions support these institutions’ missions and are sometimes co-branded with, and benefit, non-profit organizations as well.