Define: Commercial Bank

A commercial bank is a financial institution that offers various services to individuals, businesses, and organisations. These services include accepting deposits, providing loans, facilitating transactions, and offering other financial products.

To open a commercial bank account, you typically need to visit a branch in person and provide identification documents such as a valid ID, proof of address, and tax identification number. Additionally, you may need to provide business-related documents such as a business license or registration certificate.

Commercial banks offer a range of accounts, including checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). Each account type has its own features and benefits, so it’s important to choose the one that suits your financial needs.

Yes, most commercial banks provide online banking services that allow you to access your account, view transactions, transfer funds, pay bills, and perform other banking activities through a secure website or mobile app.

While both commercial banks and investment banks are financial institutions, they serve different purposes. Commercial banks primarily focus on providing banking services to individuals and businesses, such as accepting deposits and granting loans. On the other hand, investment banks specialize in assisting companies with raising capital through activities like underwriting securities and facilitating mergers and acquisitions.

Yes, most commercial banks are insured by the Federal Deposit Insurance Corporation (FDIC) in the United States. This insurance provides depositors with protection up to a certain amount in case the bank fails.

Yes, commercial banks may charge fees for various services, such as monthly maintenance fees for checking accounts, overdraft fees, wire transfer fees, and ATM usage fees. It’s important to review the bank’s fee schedule and understand the charges associated with their services.

Commercial banks have lending criteria and policies in place to assess the creditworthiness of borrowers. They evaluate factors such as credit history, income, and collateral before approving a loan. Therefore, not everyone may be eligible for a loan from a commercial bank.

In certain circumstances, a commercial bank may close an account without prior notice. This can occur if the account holder engages in suspicious or illegal activities, violates the bank’s terms and conditions, or if the bank decides to discontinue offering a particular type of account. However, banks are generally required to provide notice when closing an account, unless there are exceptional circumstances.