Before choosing the bank that where is the best to create an account every one want to know about the services of the bank. There are not the same structure or same purpose of all banks. Here is some information for you through which you can distinguish between Investment bank and commercial bank. After that, you will know that which is the best bank to serve you.
Commercial bank For everyday need
- For the banking need mostly people use the commercial bank.
- Most people do not choose the option between commercial vs investment banking option.
- They choose that bank which is most accessible for them such as near to their home or their work.
JP Morgan Chase Bank is the leader in the commercial banking with Bank of America and with Wells Fargo.
Individual and for business purposes people can deposit or cash withdrawal from the local branch. Also, peoples can save money and take home equity loan from the local branch.
There are many other services in the local branch such as the notary services, safe deposit boxes, money order services and the convenience of the ATM machines.
There is the charter granted by the government to the commercial bank in which that bank operates. they are many shareholders in the commercial bank.
Earning money totally base in this bank on the services fee and on the interest rate which will apply on the loan amount.
As this bank work under the charter of the government that’s why it is the member of the reserve system of the state and it carries the insurance deposit.
If in case the bank financially fails then up to $ 250,000 consumer deposit protect by this regulation.
Investment Bank for Corporate need
Investment bank uses by the entrepreneur and from the high-level businessmen. Those companies which want to expand their business for which they need to raise funds by sell bonds or sell stock. Investment bankers negotiate the stock price and sell and assist these corporations.
Similarly, the corporation takes the service from the investment bank in order to expand their business.
A difference of visibility between commercial and investment bank
Difference between an investment bank and a commercial bank can be examined by visibility and recognition.
- Commercial bank directly serves the public and local business. Commercial banks do marketing even in the street places in order to expand their Familiarity and strong relationship between the community.
- While the services of the Investment bank for the investor and for the businesses. investment banks do marking at the business channel rather than the marketplaces.