The lines between them have certainly blurred but, according to the Conference of State Bank Supervisors, there are differences between banks, thrifts and credit unions, which are the third major deposit-taking institutions. Online banks are another entity that's making a significant pitch for your banking business. Commercial banks have traditionally been the largest source of loans to small businesses. They also make consumer loans and mortgages and offer credit cards, deposit products and checking accounts for everyone from students to seniors. Thanks to deregulation, banks can offer insurance and investment products such as mutual funds and IRAs.
Many banks also offer trust services, estate planning and asset management.
Banks vary in size from mega-banks with hundreds of branches nationwide to small community banks that specialize in serving the needs of the local clientele. Many banks are publicly held corporations. Their principal goal is to make money for their stockholders. Today's thrifts offer checking accounts and make business and consumer loans as well as mortgages. They can be either federal or state chartered.