What is the meaning of thrift bank?
Thrift bank is a term for a category of financial institution that focuses on taking deposits and providing residential loans. Savings and loans associations and savings banks are prominent types of thrift banks.NameThe name “thrift” was attached to these banks because when they were first formed they only offered savings accounts, according to an explanation of thrifts by the Connecticut Department of Banking.ProductsThrift banks have expanded their portfolio since their original formation and now also provide checking accounts and offer business and consumer loans, according to the Connecticut Department of Banking.Low-cost fundingAccording to Investopedia.com, thrift banks often can utilize low-cost funding from the Federal Home Loan Banking System. This allows the thrifts to offer “higher savings account yields to customers and increased liquidity for mortgage loans.”Focus on housingIn order to retain their federal or state charter, thrift banks are required to keep a high percenta
