Once a group of investors or individuals has decided to start a new bank or savings bank, they must first decide whether the institution is to be state or federally chartered. If a state charter is desired, application forms may be found on the Forms page. Interested party(s) should also contact the Division of Financial Institutions, Corporate Regulatory Services Unit at (517) 373-6950, to discuss the application process for starting a new bank or savings bank in Michigan.

If a federal charter is desired, individual(s) should contact the Central District Office of the Comptroller of the Currency (OCC), One Financial Place, Suite 2700, 440 South LaSalle Street, Chicago, Illinois 60605 or telephone (312) 360-8800, for a national bank charter, or the Office of Thrift Supervision (OTS), 200 W. Madison Street, Chicago, Illinois 60606, (312) 917-5000, for a federal savings bank charter.

Both banks and credit unions are depository institutions and offer consumers many of the same services.

A credit union is a "not for profit" corporation organization owned by its member depositors and is established solely for the benefit of its members. A credit union operates under the authority and receives its powers from the Michigan Credit Union Act. Deposits in a credit union are insured by a federal agency, the National Credit Union Administration.

A bank is a "for profit" corporation owned by its stockholders and is established to provide financial services to the general public. Bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC). State-chartered banks operate under the authority and receive powers from the Michigan Banking Code.

No, each bank determines its own lending criteria based on availability of funds, targeted market, risk, and a host of other considerations.

No, mutual fund shares purchased at a bank carry the same risk as any other mutual fund shares, including the possibility of loss of principal.

A bank has the right not to cash your check if you do not have an account relationship with it. However, your employer can make arrangements with the bank or credit union to cash payroll checks.

Generally, the rate that may be charged is the rate permitted in the financial institutions home state. This is determined by either that state's statutory code, or by the State Financial Institutions Department which has chartered the bank. A Michigan State-chartered depository institution may charge whatever interest rate the institution and the customer agree to.

Both banks and mortgage companies can make mortgage loans. Banks, however, can also take deposits of your money, which can be placed into a savings account or checking account, but mortgage companies cannot take deposits. Banks are also authorized to engage in other types of lending, e.g. commercial loans, installment loans, credit card loans, etc.