There are generally three types of banks in the United States: commercial banks, savings banks, and savings and loans. The word bank is commonly used to refer to all three types. In recent years laws have changed to allow the different kinds of banks to carry on many similar types of business.

Commercial Banks - A commercial bank receives deposits from customers and can also make loans to them. The bank can administer funds for customers, issue credit cards and letters of credit. Commercial banks are owned by shareholders in the bank corporation. These banks make most of their money from interest paid by loan customers.

Savings Banks - A savings bank is owned by the people who have savings accounts at the bank. Savings banks also take deposits and use the money in savings accounts to make loans for homes (mortgages), individuals, businesses, and other banks. Most of the accounts in a savings bank are savings accounts.

Savings and Loans - A savings and loan association is different from a savings bank only in that its main type of loans are for housing, construction, and home improvement. Savings and Loans have recently begun offering more services which are similar to those of commercial banks.