Financial institutions facilitate channeling funds from households and firms with surplus funds to households and firms that need to borrow.

Commercial banks are the most common and most unrestricted type of bank which are allowed the most latitude in the services and investments offered. Insurance for depositors may be provided by the Federal Deposit Insurance Corporation.

Credit Unions are not-for-profit financial institutions, typically formed by employees of a company, a labor union, or a professional or religious group and operated as a cooperative. Credit Unions may offer a full range of financial services and may pay higher rates on deposits and charge lower rates on loans than commercial banks. Credit Unions are regulated by the Federal Credit Union Administration.