What Is a Savings & Loan Association?
A savings and loan association, also known as a thrift bank, is a financial institution specializing in accepting savings deposits and originating mortgage loans.
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History
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Savings and loan associations were created to take the origination of mortgages out of the hands of insurance companies. Savings and loan associations are often community-based and smaller than banks.
Products
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Savings and loan associations often specialize in savings accounts and loan origination, offering customers better interest rates than other financial institutions. These institutions also offer other products, such as checking accounts.
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Investing
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The majority of savings and loan associations use money invested in savings accounts to originate loans for consumers to buy or repair homes. These associations allow more people within a community to purchase a home.
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