Did you know that around 7% of Americans don’t have a bank account? Having a bank account is important for saving money, keeping your money safe, and keeping track of how much you are spending.
In addition to helping you manage your money, you can work with your bank when you need a car loan, mortgage, or credit card. While there are many benefits to having a bank, choosing the right one is essential.
What are some of the most common types of banks? Keep reading to learn more about choosing the best banking establishment for your needs.
1. Retail Banks
One of the most common types of banks is retail banks. Retail banks are what most people use to open a checking account, savings account, and to get a personal loan.
Some of the biggest retail banks include Wells Fargo, Bank of America, and PNC. If you are looking for a personal bank, a retail bank may be the best option.
While there are many traditional retail banks, there are also other options. If you want to take out a loan, consider the infinite banking concept before taking a traditional loan.
2. Investment Banks
Another one of the most common types of banks is investment banks. While retail banks prioritize checking and savings accounts, investment banks focus on bonds and stocks.
If you own a business and you want to go public, or you in an individual building a portfolio, you should consider using investment banks.
They can help you raise capital for your business, manage your assets, and make other business financial decisions. Most investment banks will charge you for using their services.
3. Private Banks
If you have a large amount of money, you should consider using a private bank. Most private banks help individuals with a large net worth manage their assets.
Most of the time, you need to have at least $1 million in net worth to use a private bank. Private banks can help you get better interest rates, invest your money, and manage your credit.
4. Commercial Banks
Commercial banks are best for businesses, nonprofits, and government entities. While some commercial banks work with individuals, they focus on clients with complicated bank accounts and taxes.
Choosing a commercial bank could be best for you if you need a business loan, help with business taxes, own a commercial building, or are conducting business internationally.
5. Credit Unions
Credit unions are like retail banks, but they aren’t for profit. Because credit unions are non-profit, it can be easier to get a low-interest loan, credit card, and mortgage.
Many credit unions operate in areas of low income to help out the economy. There are also credit unions for veterans and government employees.
Which Types of Banks Are Right for You?
Choosing the right bank can save you money, allow you to secure a loan, and protect your money. If you are looking for the best banks in the financial industry, keep these types of banks in mind. Did you enjoy reading this article on choosing a financial institution? If so, check out the business and finance category to learn more about managing your finances.