What is Saving Institution?

Savings institutions are similar to commercial banks. They take deposits for checking and savings accounts, and use the funds to provide loans, principally home mortgages, and to invest in securities. They have easy access to loans from the Federal Home Mortgage Banks.

Savings and loan associations are usually smaller than other banks and focus mainly on the local communities in which they operate, therefore they often have better knowledge of the local market.
Recently, the distinction between commercial banks and savings institutions has become blurred, the financial services industry has become more homogeneous.