What are the differences between each of the three types of banks—retail banks, credit unions, and online banks?

Retail Banks: These are the traditional banks that provide a range of services to individuals and businesses, including checking and savings accounts, loans, and credit cards. They have physical branches where customers can visit to conduct banking transactions. Retail banks are for-profit institutions and aim to generate profits for their shareholders.

Credit Unions: Credit unions are non-profit financial institutions that are owned and operated by their members. They offer many of the same services as retail banks, but the profits are returned to members in the form of lower fees and higher interest rates on deposits. To join a credit union, a person typically needs to meet certain eligibility criteria, such as living in a certain area or working for a certain employer.

Online Banks: Online banks operate entirely on the internet, with no physical branches. This allows them to have lower overhead costs, which can result in lower fees and higher interest rates on deposits. Online banks offer many of the same services as retail banks and credit unions, including checking and savings accounts, loans, and credit cards. However, they may not offer all the services of a traditional bank, and some people may find the lack of physical branches inconvenient.