A. There are four major types of banks in the U.S., they are:
- National Banks: such as Citibank, Bank of America, and Wells Fargo.
- Regional Banks: they typically operate within a region.
- Credit Unions: they are membership-based banks, could be regional, could be national.
- Online Banks: they only operate online.
What are the Pros of these 4 different types of banks?
National Banks
These giant banks have locations across the country and ATMs located in branches, drug stores, supermarkets, etc. in short, they are super convenient to make deposit and withdraw money.
National Banks tend to be one-stop shops for your financial needs and offer services such as mortgage, investment, credit card services, et.
National Banks also often offer free checking and most have online services.
Regional Banks
A regional bank more likely to offer incentives that big banks don't have. Because of their smaller sizes, they are more customer friendly and focus on relationship building, and lower fees.
Credit Unions
A credit union has its customers as members, and its mission is to help its members. Credit Unions often are linked to labor unions, employers, or certain large organizations, although there are community-based credit unions as well.
Due to non-profit status, a credit union might offer lower fees, lower loan rates, higher interest rates, and free checking.
Online Banks
Online banks conduct businesses online, most customers transact business on their computers or smartphones. Online Banks often offer call centers and in-network ATMs for customers.
In our next blog post, we will discuss the Cons of the four types of banks.