What is the difference between a financial institution and an insurance company?

A financial institution is an organization that provides services that people need to manage their money. Financial institutions include different types of banks and credit unions.

Insurance companies are a type of “non-bank” financial institution that sell policies that provide protection from various kinds of risks. Risks that insurance policies cover include the loss of life, income, or possessions and the high cost of medical bills.

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Why should people have a bank checking account?

There are several good reasons for having a bank checking account:

  • A checking account can help you manage your money and keep it safe.
  • You don’t have to carry large amounts of cash around.
  • Most businesses accept checks if you have a state ID or driver’s license.
  • You can usually acquire a debit card, which can be used like a credit card for buying things online or making online payments, paying at the pump for gas, etc.
  • Canceled checks are