Limited Service Bank
What Is a Limited Service Bank?
A limited service bank is any form of a banking business institution that is found separately from the bank's primary location. Banks might offer separate services from what they offer at their fundamental facility, or between different branches.
How a Limited Service Bank Works
A limited service bank can offer limited options by decision. A few institutions are automatic and decide the types of services and products offered at their locations and the time periods wherein they are available in their bank charter. These types of banks might have some expertise in specific products, for example, credit lines or personal loans, and may not wish to extend past those products across all locations.
They could be additionally limited by the laws in their state. These regulations are more normal in the Midwest and Southwest of the U.S., where banks are more limited on the number of branches they can have that offer full services. This is to prevent a banking monopoly in additional rural areas where networks could be better serviced by more modest institutions. These are likewise called unit banks.
A limited service bank might have a separate location for taking deposits, where they don't permit their products and services to be sold. These are not the same as full-service banks, which offer all services and products across all locations.
Bank ATMs
Automated Teller Machines (ATMs) act a ton like limited-service banks. Consumers can deposit and pull out monies at ATM locations that are offsite from the primary branch locations. Users can likewise check their balances and even pay bills (mortgage or loans) from the ATM, and transfer funds starting with one account then onto the next.
ATMs offer convenience for those voyaging abroad. Making withdrawals in another currency frequently accompanies extra fees like a "overcharge" and "unfamiliar ATM" fees.
Illustration of a Limited Service Bank
For instance, say that the speculative Money Bank, U.S. has 10 branches across Southeastern Pennsylvania. At each location, you can put aside an installment, cash a check and apply for a home mortgage. At the point when they run a promotional offer crediting new account holders $20 towards ordering checks, the promotion runs all through their 10 branches as a whole. A customer could walk into any branch and receive overall similar services, simultaneously. This is a full-service bank.
Presently take the speculative U.S. Coin Bank, an Iowa-based bank that additionally has 10 branches across the state. At the point when a customer goes to the branch in Cedar Falls, they can cash checks in the event that they are a current account holder. A customer who needs to apply for a mortgage with U.S. Coin Bank wouldn't have the option to do it at the Cedar Falls branch, however would rather have to head out to the Cedar Rapids branch to do as such. Besides, they would have to head out to the branch in Carbon to assume out a praise card. This is an illustration of a limited service bank.
Features
- A limited service bank might have a separate location for taking deposits, where they don't permit their products and services to be sold. These are not the same as full-service banks, which offer all services and products across all locations.
- A few institutions are automatic and decide the types of services and products offered at their locations and the time periods wherein they are available in view of their bank charter.
- Automated Teller Machines (ATMs) act a ton like limited-service banks. Consumers can deposit and pull out monies at ATM locations that are offsite from the primary branch locations.
