Which one is suitable for you?

Do all banks look the same? If so, you may want to take a closer look. After all, there are more than 10,000 banks in the United States alone, and each provides a unique set of services, sub -sites, account fees, interest rates and more.

Despite the huge number of options, most people give their business to a few dozens. But when you fail to one of these large financial institutions, you may lose major privileges, such as high interest rates on your deposits, low fees, personal services, and more.

Looking at the huge size of the options, how can you choose where your money takes? One of the ways to narrow it is to understand the different types of banks and what each one does.

The central bank is not the type of bank in which you can become a customer, but these institutions are important though. Central banks help organize national economies by setting policies that affect the width of money and the cost of borrowing.

In the United States, the central bank is Federal Reserve. It consists of 12 separate banks in the field of federal reserves located throughout the country. Some of the most important functions they perform include lending to money for other banks and enforcing consumer protection laws.

When you think about the large banks you know, they are likely to be commercial banks. For example, JPMorgan Chase, Wells Fargo, Bank of America and Citibank are four of the largest commercial banks in the United States is the main commitment to these banks is to earn money for their shareholders.

Commercial banks offer accounts and bank loans to individual customers, as well as for small and medium -sized companies. These banks are comfortable options for your daily banking needs, as they tend to give you a variety of ways to deposit, withdraw and transport money, including a person, online or via applications.

However, if you are looking for the lowest banking or the highest interest rates on your savings and CD deposits, you will likely want to try an online bank, a smaller bank or a credit federation.

National banks are a type of commercial bank. These large institutions are organized by the federal government, but they can work in any state. Many of them can be identified because they have a national word in their names, such as the First National Bank, the Old National Bank and the National Peoples Bank.

Read more: These are the 20 largest banks in the United States.

Regional banks They are banks that have $ 10 billion to $ 100 billion of assets. This may seem like a lot of money, but by comparison, Bank of America runs more than $ 2.5 trillion.

Regional banks often operate through several states, with ATM networks at the country or even global levels. It also provides all the same services as large national banks, but they tend to obtain more relationships with their societies, including through charitable giving and local volunteer work.

The regional bank can be a good option if you want your money to return to your community, or if you want better prices for your deposits and loans than you will get from a larger bank.

A Community Bank The bank is less than $ 10 billion in assets. Community banks usually have all their branches in a limited geographical area, such as a boycott or city, and often provide services designed for people living in the region.

Their technology may not be the best line when compared to some large banks, but most community banks have the main services that you need as a customer, such as Banking applications And deposit a mobile phone examination.

It may be difficult to find the community bank in your area, because its total numbers have been shrinking in recent years. But it is still a good choice if you want to experience a more custom -faced face than you get from a main bank.

Community banks can also be a good choice for people who have There is no bad credit or credit Because some are more flexible with loan qualifications than large banks. In addition, it often specializes in small business loans.

Investment banks work primarily with large companies and companies. If you own a company, it is possible that one of these banks will serve you in several ways, including helping you invest in money and secure capital for you for property rights.

However, you will probably need to go elsewhere to meet your daily commercial banking needs, because investment banks do not usually offer products such as checking accounts. It also tends to impose higher fees than commercial banks.

Banks onlineAlso known as digital banks, they only provide online services and through banking applications. Although you can access your online bank account only through ATMs, online banks do not have material branches where you can go to do things like deposit and withdrawing cash.

Some banks include the largest online that you may have heard:

Since banks on the Internet only do not have material sites, their general costs are less than other types of banks. This allows them to pass their savings for customers in the form of high rates on deposit accounts, low competitiveness rates on loans, and low banking fees.

If you are comfortable to manage your money almost exclusively online (or just go to money), the bank on the Internet can be a profitable choice. Online banks are only useful if you live in a rural area where there are no banks near, assuming that you have an internet connection.

New Technically not banks – it is a financial technology (FintechCompanies that provide banking services in partnership with FDIC rented banks.

Like banks online, Neobanks only provides digital services with a focus on technical innovations forward and improved user experience. They also have relatively low fees. However, Neobanks usually offers a small range of basic banking products, such as standard verification accounts, savings accounts and high -yield savings.

Neobanks can be attractive options for people who are struggling to qualify for a bank account or credit card because they often have flexible requirements for qualification, and they provide products to help enter banking services. For example, Harmonious Both guaranteed credit card and a bank account for the second number are offered.

Read more: The 5 best companies Neobanks and Fintech for 2025

9, Association for savings and loans

Savings and loans (S& LS), which are also called savings or Thrifts, provides basic banking services, but they meet the needs of individuals (not companies) who need the following products:

• Real estate mortgage loans

• Savings accounts

You can learn about the savings and loans association in its name: Either it ends in SSB (for the Government Steel Bank) or FSB (Federal Steam Bank).

In 2025, there are slightly less than 250 active federal savings banks in the United States, these banks can be cooperation, which means that customers are also members who own the bank or companies, which means that the shareholders are the owners.

Banks and credit federations Both financial institutions. It provides many services themselves, but they have major differences.

While banks are companies owned by profit by private sector investors, Credit unions They are non -profit organizations owned by their members. As a result, credit federations are usually able to provide lower account fees and interest rates on loans, as well as high interest rates on deposits.

Credit federations also contain more products that aim to help people who are struggling financially, such as alternative payment day loans.

However, one of the potential defects of credit federations is that it requires you to meet certain qualifications for membership. For example, you or a family member who already constitutes part of the Credit Union may have to live in a specific geographical region or work in a specific industry.

Read more: 7 credit unions that anyone can join

As you can see, you have a variety of options when it comes to the place where you do the bank. To select your best bank, ask yourself these questions:

• What is available in your area?

• Do you prefer digital or personal banking services?

• What products and services do you need immediately over the next few years?

• Do you want a bank investing in society?

• Are high deposit rates and low -priority loan rates?

• Do you need a bank that works bad credit or a negative banking history?

• As for credit federations, do you meet the requirements of her membership?

Based on your answers, you may find that the best type of bank is not necessarily the major national banks that you see in each other. For many consumers, your needs will be better met with a smaller institution that provides competitive interest rates with strong online services and easily accessible bonus devices.

Read more: The bank’s selection guide for the ordinary consumer