Retail banks, credit unions, and online banks all offer the basic financial services, such as checking and saving accounts, loans, and credit cards; however, there are a few major differences between them.
Retail banks tend to have more locations and offer established products and services.
Because credit unions are not-for-profit institutions, they can usually provide their members lower fees and higher interest rates on saving accounts.
Online banks can offer lower fees and higher interest rates on savings accounts because they don’t have the expenses of operating and maintaining physical locations.
Having accounts at more than one financial institution is acceptable to take advantage of lower fees and higher interest rates. Insure you choose a financial institution that is backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).