Commercial bank
Definition
A commercial bank is a financial institution that accepts deposits from individuals and businesses, provides loans and credit, and offers other banking services such as checking accounts, savings accounts, and certificates of deposit.
Analogy
Think of a commercial bank as a supermarket for money. Just like how you go to a supermarket to buy groceries and household items, you go to a commercial bank to store your money and access financial services.
Related terms
Checking account: A type of bank account that allows the account holder to easily withdraw funds using checks or debit cards.
Loan: Money borrowed from a lender with an agreement to repay it in the future with interest.
Savings account: A type of bank account that earns interest on deposited money while providing easy access for withdrawals.
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