Who Holds Your Money?
Different organizations play different roles in your financial life. Understanding who does what — and who does not — will help you make better decisions across banking, investing, and borrowing.
For-profit companies that hold deposits, issue loans, and provide financial services.
What They Offer
- Checking accounts
- Savings accounts
- Loans and mortgages
- Credit cards
- ATM access
What They Do Not Do
- Investment advice
- Retirement account management
- Insurance (usually)
Why you might use them: Day-to-day money management, safe place to store cash, easy access to funds.
Member-owned, not-for-profit financial cooperatives that often offer better rates.
What They Offer
- Checking accounts
- Savings accounts
- Loans (often lower rates)
- Credit cards
- Financial education
What They Do Not Do
- As many branches/ATMs
- Advanced investment products
- Business banking (some)
Why you might use them: Better interest rates, lower fees, community focus, personal service.
Companies that let you buy and sell investments like stocks, bonds, and funds.
What They Offer
- Investment accounts
- Retirement accounts (IRA)
- Stock/bond trading
- Research tools
- Some offer banking
What They Do Not Do
- Traditional loans
- Physical branch services (usually)
- FDIC insurance on investments
Why you might use them: Growing wealth over time, retirement investing, building a portfolio.
Your workplace often provides access to retirement accounts and benefits.
What They Offer
- 401(k) or 403(b) plans
- Employer matching
- HSA accounts
- Payroll services
- Financial wellness programs
What They Do Not Do
- Personal banking
- Investment advice (usually)
- Accounts after you leave
Why you might use them: Free money through matching, tax advantages, automatic contributions.
Federal and state governments offer certain financial products and protections.
What They Offer
- Savings bonds
- Federal student loans
- Social Security
- FDIC insurance
- Financial aid (FAFSA)
What They Do Not Do
- Day-to-day banking
- Investment accounts
- Quick access to funds
Why you might use them: Student loans with protections, guaranteed savings, retirement benefits.
Key Takeaway
Most people use more than one institution at the same time — and that is normal. You might have a checking account at a bank, a Roth IRA at a brokerage firm, and a 401(k) through your employer. The key is understanding what each one does best and using them for their intended purpose.