Jeff's financial needs are quite simple. He only wants to open a basic savings account. Let's look at the first three options:
a) Financial Services Company
b) Commercial Bank
c)Insurance Company
d) Trust Company
A Financial Services Company will often offer services such as financial advising and will even manage your funds for you, investing them based on your investment goals. This is a bit more than Jeff needs, and will likely involve heavier fees.
B) A commercial Bank exists for providing financial services to the general public, and includes a wide range of services from basic to more complex. This is the best institution for Jeff's savings account.
C) An insurance company likely will not offer the service Jeff needs.
D)Trust Company: A Trust Company takes charge of a set of assets, often an estate or large sum of money, due to a potential conflict of interest or a temporary period of uncertainty regarding who is entitled to the assets.
As for the second list:
Investment banks and asset management companies take a more active role in investing the funds. Typically there is a significant minimum investment, some higher fees, and more exposure to risk. These are not ideal options for Jeff's basic savings account.
A credit union offers savings account, and is a viable option for Jeff. However, the best option of this list is a savings and loan association, as they specialize in this service.
