Savings and loan banks are also known as savings and loan associates.
These are building associations, banks homestead associates, cooperative or partnership of American and other countries financial worlds.
Now they are cross between a commercial banking institution and credit union which accept deposits and make loans mainly for real estate or be a mutual association or stock associates.
The original savings and loan bank is set to help persons that could not use more conventional banking resources to obtain purchases such home or a house.
The function is to raise funds from depositors to invest in a long term residential mortgages and other types of mortgage investment where in the bank can also fund refinancing, or repair residential units and construction.
Savings bank is a type of bank where in it specialized in savings and checking accounts which are made available to the public.
It is typically some kind of lend out the deposits in the form of mortgages to its clients.
Most people want to deal with the safest banks as possible in savings, loans and credit union.
You need to determine what the safe from potential unsafe.
As client or customer, you need to understand the features that indicate safety or instability.
Safe and clear policies, procedures and management quality of banking company or institution are important to everyone.
Remember that even banking institution with good quality insurance can only protect the depositors' principal balance up to limits.
Most of bank safety stems from unclear lending practices where in borrower can encounter problems when the lenders have financial issues while specific loan terms cannot be unilaterally changed.
Safety is more subjective and complex in operating strategy, operating techniques and take note that strategy are critical to a long term viability and profitability so one must be careful to which saving and loan banks you deposited your money.
Your hard earning money should be in a safe and good hand so you have it deposited to a bank.
Before doing it, try to shop around which saving and loan banks are more credential and having serving the people for a quite period of years.
Let us compare savings bank to savings and loan banks.
In savings bank is also much like to a commercial bank but it is more in line with savings associates in its form of charter and operations or for short, a financial institution which primary purpose is saving banks and accept savings deposit only wherein your savings deposit will have an interest.
In savings and loan bank, you can have a loan as short term loans for your savings and remember that you also have to pay an interest on it.
This savings and loan bank is good only if you know how to make your money profitable like for instance, planning to have a business.
Most people want to deposit their hard earning money it is because it has an interest and same time, when they have financial problem they have something to use.
So bear in mind that banks are also a business.
You deposited your money and at same time, they let your money borrow from other business establishment through loans.
Bank earns profit through the interest of the loans and in the interest they got from the borrower will also be shared to the depositors.
But only in minimal percentage rate depending to the amount of your savings deposit.