A savings and loan association (S&L) is similar to a bank; however, it takes savings deposits and makes mortgage loan payments. The original use of the savings and loan association was to take savings deposits from private investors. Also, they were to provide a service of home mortgage loans to the general public.
Savings and loan associations will gain a larger interest rate than that of a commercial bank and they are highly active in home loan mortgage markets. A savings and loan association is usually broken up into two sections. These sections are either mutual stock institution or a capital stock institution.
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