A federally
chartered bank that specializes in taking
deposits for
checking and
savings accounts, as well as making
home mortgages. Savings and loan associations tend to be smaller than other banks and are more focused on the local communities in which they operate. It is sometimes (but not always) easier to obtain a loan from a savings and loan association because it may have better knowledge of the local
market. They derive most of their
funds from customer savings accounts, but they also generally have easy access to
loans from the
Federal Home Mortgage Banks. They are also known as thrifts. They are regulated by the
Office of Thrift Supervision.