These organisations offer financial services to individuals or businesses. These services include the ability to deposit or withdraw money, obtain credit and make investments, as well as offering advice on matters of personal and business finance.

Bank of England

This is the UK's central bank which is responsible for maintaining a healthy level of financial stability in the UK as a whole. Their responsibilities include issuing legal tender, setting interest rates and controlling the national debt.

Advantages

Protects stability of UK economy

Manages Interest Rates for UK to stabilise economy

Lends to Banks

Disadvantages

Not a bank for the general public

Can raise interest rates making borrowing expensive

Click here to find out how changes to the interest rates might affect you.

Banks

This is an organisation which handles financial transactions and stores money on behalf of it's customers. Services include, holding deposits, making payments and supplying credit.

Advantages

Range of services and accounts

Secure place to store money

Interest payments made on balance

Disadvantages

Savings only protected up to £75,000

Profit making organisation so costs incurred by customers

Building Societies

This is an organisation which handles financial transactions and stores money on behalf of it's members. The members or account holders are part owners of the building society and have a right to vote and receive information on the running of the society. Unlike banks they do not have sharesholders on a stock exchange which keeps costs down.

Advantages

Range of Services and Account Types

Secure

Interest payments on balance

Cost usually low as kept down by members

Disadvantages

Savings only protected up to £75,000

May lack the business drive of a commercial bank

Credit Union

These are not for profit organisations that handle financial transactions and store money on behalf of it's members. There is a responsibility to support a community made up of it's members. Members are owners and have a voting right.

Advantages

Range of Services and Account Types

Secure

Interest payments on balance

Cost usually low as kep down by members

Often offer additional benefits to community or a good cause

Disadvantages

National Savings and Investments

Savings only protected up to £75,000

May lack the business drive of a commercial bank

National Savings and Investment

This is a government-backed organisation that offers a secure saving option. It offers ISAS, premium bonds and gilts and bonds.

Advantages

Government backed offers security on all savings

Offers additional services e.g. Premium Bonds

Disadvantages

Variable Rates

Not as easy to access as lack of high street presence

Notice required for withdrawals

Insurance Companies

These are businesses that protect against the risk of loss in return for a premium. They are profit-making organisations.

Advantages

Protect against unexpected losses

Esy regular payments

Wide range of services and level of cost

Disadvantages

Premiums are assessed on degree of risk some members may feel penalised

Profit making organisation may affect premiums to rewards shareholders

Pension Companies

These sell policies to individuals, either privately or through employers, to allow them to save now to fund retirement in the future. Pension companies normally invest the money paid to them in contributions in order to increase it's value. However this is not risk free.

Advantages

Provides a structure to plan for financial stability once retires

Deductions taken directly from pay can be fully or partially matched by employer's

 contribution

Experts employed to make investment decisions

Disadvantages

Poor investment decisions amay result in poor returns

Money already invested in pension cannot be released prior to the dates agreed in policy without penalty

Pawnbrokers

These are businesses or individuals who loan money against the security of a personal asset, for example a piece of jewellery. If the money is not repaid by a specified date the item will be sold on.

Advantages

Easy access to cash for emergencies

Asset can be bought back within timeframe

No interest charged

No need for credit check

Does not affect credit score

Regulated form of credit

Disadvantages

Amount given for asset is usually lower than value

Asset can be sold if not repaid in time

Payday Loans

These are organisations that offer a short-term source of finance used to bridge the gap between now and next receiving a wage; they are normally only available for small amounts of money at very high rates. May be useful in an emergency to meet cash shortages.

Advantages

Quick Access to cash

Disadvantages

High interest rate

Usually repayment is much higher than amount loaned.