What are the different types of banking institutions?

There are three major types of banks or financial institutions.

Bank - A financial institution run under federal and state laws and regulations.

Credit Union - A nonprofit financial institution owned by people who have something in common. You have to become a member of the credit union to keep your money there.

Thrift - A savings bank or savings and loan association that is similar to a bank. Thrifts were created to promote home ownership and must have a majority of their assets in housing-related loans.