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LEARNING INSIGHTS “THRIFT AND RURAL BANKS”

Thrifts have the advantage of offering many of the same deposit products as banks, such
as checking accounts, savings accounts, and certificates of deposit, as well as credit products
such as house and auto loans and credit cards. But The downside is that when you take out a
loan, you are essentially borrowing from your own future. When you withdraw funds from your
Thrift Savings Plan account, you forfeit the investment growth that would have resulted. While
they aren't as common as they once were, savings and loan associations, or "thrifts," continue to
play a vital role in many people's financial lives. The main difference between a thrift and a
traditional bank is that thrifts are established to service customers rather than companies.
Consumer loans must account for at least 65 percent of a thrift's lending portfolio by law. The
distinction between thrifts and traditional banks is becoming increasingly blurred. Savings and
loan associations are expanding into commercial lending and construction, and a growing
number are merging with traditional banks. And According to a top government official, rural
banks play a critical role in supporting inclusive development, particularly in rural areas, by
giving loans to primary food producers such as farmers, fisherfolk, and small businesses, which
are often among the most marginalized segments of the economy.
I honestly believe that banking institutions are more hazardous than standing armies, and
that the notion of spending money to be paid by posterity in the name of funding is nothing more
than a large-scale swindle of future generations.