A retail bank is what you probably think of when you hear the word “bank”. Basically, it’s a bank that works with consumers by offering basic banking services such as checking accounts, savings accounts, and more.
While investment banks focus on corporations and governments, retail banks focus on individuals. Continue reading to learn more about retail banks and the services they offer.
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What is Retail Banking?
As mentioned previously, retail banking provides services and products to individual customers. Also known as consumer banking, it is focused on fulfilling the personal needs of individuals rather than businesses or governments.
You can find the services at local branches, where customers can withdraw and deposit money and speak with a banker about their needs. Furthermore, you can also find services at ATMs or through online and mobile banking platforms.
Retail Banking Services
Some common services include:
- Checking Accounts: These can range from basic checking to interest-bearing checking accounts which are designed for customers with high balances.
- Savings Accounts: Similar to checking accounts, retail banks usually offer a wide variety of savings accounts.
- Certificates of Deposit: CDs pay more than savings accounts, but you need to leave your money untouched for at least a couple months in order to avoid fees.
- Safe Deposit Boxes: These keep your small valuables safe at the bank so they can’t be destroyed or broken into at your home.
- Auto Loans: Auto loans help people buy a car, and can also be refinanced.
Other Types of Banking
- Investment Banking: Investment banks provide services–such as raising financial capital by underwriting debt or equity issuances, and assisting in mergers and acquisitions– to corporations, governments, and individuals.
- Commercial Banking: Commercial banking focuses on the corporate or institutional world. Although they offer similar products to retail banks, businesses have different needs, so commercial banks may also offer things like foreign trade services, treasury management services, and more.
- Private Banking: Private banking is similar to retail banking, however, it provides services to individuals with a high net worth. These services are much more personal than you would find at a retail bank.
Author’s Verdict
Retail banking is one of the most common forms of banking and provides services to individual consumers. Knowing the services offered and the other types of banking out there is an important first step in your financial journey.
In addition, we have a list of bank promotions to get some extra cash in your pockets today. You may also want to check out savings accounts if you want to get started on saving up money.
