Financial services refer to the financial services offered by the finance sector, which includes a wide assortment of financial organizations that deal with money, such as banks, credit card companies, credit unions, and investment firms. Financial services involve the use of financial resources to meet the goals of companies and individuals. Financial services involve lending, borrowing, investment, trading, protecting wealth, etc. Financial services are broadly divided into three categories: savings accounts, investment securities, and loans.
Savings Accounts Many different consumers prefer saving money in a bank account so they can access it when necessary. The savings accounts offered by the financial services sector offer a variety of features and interest rates for such purposes. Some of the most popular savings accounts in the US include Certificate of Deposit (CD), Certificate of Credit (CC), and Savings Account (SC). A savings account allows its user to deposit a specific amount of money, at any given time, as collateral for a loan. Most CD’s are insured by the FDIC and offer high-interest rates. Some of these can be converted to certificates of debit.
Investment Securities A large number of financial services companies offer investment securities such as bonds, equity, and common stock. Equity securities can be traded on futures exchanges. Bond markets provide consumers with fixed returns of interest on government debt issued by the US government and other international organizations.
Financial advisors The services sector also includes financial advisors, who assist consumers with advising about investing, savings, healthcare, real estate, etc. Financial advisors can be self-employed, part-time, or work for a large firm. Most consumers select investment advisors from the list offered by a state licensing board.
Wealth Management Several large financial services companies provide investment banks, asset management firms, and retirement and wealth management programs. Wealth management programs help influence individuals to distribute their wealth more wisely. These advisory firms provide professional financial advisors and independent planners. They offer advice to senior citizens, retired military personnel, business executives, and retirees. Senior citizen seminars are often sponsored by state and local government agencies.
Life Insurance Many financial services institutions offer life insurance products to seniors. Some insurance companies offer specialized insurance products for seniors including whole life, term life, health flexible life, and universal life. Some insurance companies also offer indemnity policies, which pay benefits to survivors and dependents of the insured. Insurance is a very special product that many people need, and financial services institutions are an excellent place to find affordable life insurance products and policies.