Banks are essential financial institutions that provide a secure place for your money and offer loans for major purchases. They offer various accounts like checking and savings, and their services include processing payments and providing credit. Federal Deposit Insurance protects deposits up to $250,000 per account in case of bank failure.

Banks make money through interest on loans, fees, and investments. Different types of banks cater to specific audiences, such as central banks managing national economies, commercial banks like JP Morgan Chase, and community banks serving local areas. Online banks offer similar services without physical locations, often with lower fees and higher interest rates.

Credit unions operate differently from banks. They are not-for-profit, member-owned institutions that offer similar products but typically have higher interest rates on savings and lower fees. Membership requirements apply, and insurance coverage is provided by the National Credit Union Administration. Consider your needs and preferences when choosing a bank for your financial needs.

Read more at Yahoo Finance: What is a bank, and what does it do?