Financial closely with commercial banks for superior services.

Financial institutions help with the cash
flow of money within the economy among customers, companies and the government
(pg. 179). There are several types of financial institutions including:
commercial, investment, mutual savings, credit unions, pension funds, life
insurance, mutual funds, and hedge funds (c-5:8). Each of the previous stated
contributes its own specific service. However, in this research the main
objectives are the focuses on commercial, offshore and credit union banks.

            In an article shared by J.Singh a commercial
bank “is a financial institution which performs the functions of accepting
deposits from the general public and giving loans for investment with the aim
of earning profit”. Studies show that commercial banks offer numerous services
making its primary function to accept, lend and transfer funds.  Three types of deposits are current deposits,
fixed deposits and, and saving account deposits. Current deposits can be render
to account holders at any time, but, however no interest is added. With fixed
deposits funds can only be withdrawn until that fixed time has expired,
customers gain more interest with fixed accounts. Finally, saving accounts are
mainly for account holders to save money. Also, they are chartered by the
government (c-8, pg. 179). But, however commercial banks have advantages and
disadvantages.  According to Miriam C, commercial banks can assist with
the organizational growth of smaller businesses by creating commercial
accounts. Most companies work closely with commercial banks for superior
services.  This financial institution
also supplies invoicing and personalized services and makes deposits to other
financial institutions to help with accounting practices.  But, however, they’re some cons of commercial
bank. Also, according to Miriam C, commercial banks are much more costly than
other institutions. Unnecessary fees are charged such as nightly deposits,
numerous payroll services and checks transferred. These charges are unnecessary
but, this institution still renders them.

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            In previous research an offshore bank is when businesses
or people deposit money to a foreign country where they do not live (Peter De
Conceicao). According to Peter, offshore banks render similar practices as the
onshore bank. An individual can deposit funds and investment services are
given. This bank is located mostly anywhere, and accounts are open due to
documentation of people assets.  In an
article shared by Simon Danaher a few benefits of having an offshore bank are
as follows: Offshore banks ensure that account holders funds are secured based
upon jurisdiction rules.  Also, a next
pro is the twenty-four-hour service daily with the assistance of online and
telephone banking. “There can be expat advantages to using an offshore
bank – but whether these apply in your case will depend on your personal
circumstances, such as country of residence”.  According to Corr S. Pondent, offshore banks
are costly, which means legal fees has to be paid. “There are also certain
minimum thresholds for investment in the companies. And the host country could
require the investors to own property in the country”.

Finally, according to Joseph Wright credit Unions are “co-operative
financial institutions which operate on a not-for-profit basis, their aim being
to foster financial health in a community”.  In recent research Jaime Young stated some advantages
and disadvantages including: Receiving high quality services, voting privileges
and even dividends with the company. Also, achieving better loan rates. The
credit union believes in given individuals superior interest rates. Credit
unions can also get one on one time with customers because it’s a smaller
organization verses other banks. This can help workers to get acquainted with
customer needs and wants more. But, however some disadvantages can entail of an
individual becoming a member which will cost them a fee. Unlike a traditional
bank, credit unions rarely have branches and ATM machines. For instance, in the
Bahamas there’s one big branch where business is done. Also, with less options available
in the credit union bank that results in downfall. For more services a traditional
bank will be more suitable.

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