8 Things to Know About American Banking
Essential Insights for Consumers in 2025
The American banking system is made up of thousands of institutions that offer a wide range of services, from checking accounts to loans. Understanding key aspects of how banks operate and what features they offer can help people make better financial decisions.
Anyone living, working, or studying in the United States is likely to interact with banks at some point, making it important to be familiar with their basic functions and offerings. By learning essential facts about American banking, individuals can confidently navigate financial options and avoid common pitfalls.
1) The U.S. banking system includes over 4,500 banks of various sizes.
The United States operates one of the most diverse banking systems in the world, with more than 4,500 FDIC-insured banks. These institutions range from large national banks to small community banks.
Banks in the U.S. can have very different profiles. Some focus mainly on local lending and personal banking, while others serve national or international clients and manage significant assets.
This broad mix is a result of both historical and regulatory factors. The dual banking system in the U.S. allows banks to operate under federal or state charters, enabling distinctive business models.
The presence of thousands of banks means customers often have access to personalized service in their communities. At the same time, major national banks provide advanced technology and a wide array of financial products.
Despite ongoing industry consolidation, the number of U.S. banks remains high compared to many other countries. These institutions contribute to a diverse and adaptable banking landscape.
Bank sizes, business models, and service offerings can vary significantly, giving consumers and businesses multiple options for their financial needs. This diversity supports both local economies and the broader U.S. financial system.
2) American banks hold approximately $17.1 trillion in deposits.
American banks currently hold around $17.1 trillion in deposits. This figure reflects the total money customers have placed in checking and savings accounts across the nation.
Deposit growth in the United States is supported by a wide customer base. According to recent data, more than 90% of U.S. households have at least one checking or savings account.
These deposits are protected by the Federal Deposit Insurance Corporation (FDIC) up to current legal limits. This protection helps maintain public confidence in the safety of bank-held funds.
Deposit amounts may fluctuate slightly over time as economic conditions change. However, American banks consistently manage a substantial portion of the population’s savings and transaction funds.
This large pool of deposits allows banks to fund loans and support economic activity. It also highlights the vital role that banks play in the financial system of the country.
3) 94.6% of U.S. households have checking or savings accounts.
According to federal data, 94.6% of U.S. households have either a checking or a savings account. This means that a large majority of Americans participate in the formal banking system through these basic financial tools.
Having access to checking or savings accounts allows households to securely store money, make payments, and manage finances more efficiently. It also provides a foundation for accessing other financial services, such as loans or direct deposit.
Despite this high percentage, a portion of the population remains unbanked or underbanked. Being “unbanked” means lacking a checking or savings account entirely, while “underbanked” households may have an account but still rely on alternative financial services.
The rate of banked households shows that access to traditional banking is widespread, though not universal. Economic factors, trust, and location can influence whether families choose to open accounts or remain outside the system.
The statistic of 94.6% underscores the significant reach of banks across the United States. However, there is still work to be done to ensure access for those not yet included.
4) Banks offer consumer loans for cars, homes, and education.
Banks provide a wide range of consumer loans intended to help individuals manage major life expenses. Some of the most common types are auto loans, mortgages, and student loans. These loans allow people to purchase vehicles, buy homes, or pay for higher education.
Auto loans from banks often offer fixed or variable interest rates and can be used to buy new or used cars. The loan terms typically range from three to seven years, depending on the lender and the amount borrowed.
Home loans, or mortgages, are designed to help people purchase property. The majority of American homebuyers use mortgages to finance their homes. Mortgage terms can vary, but most last between 15 and 30 years.
Education loans, often called student loans, help cover the cost of tuition, books, and other school-related expenses. Banks, credit unions, and federal programs all offer student loans, though terms and interest rates may differ.
By offering these loans, banks play a critical role in enabling access to essential goods and services. This support helps individuals achieve important financial and personal goals.
5) The Office of the Comptroller of the Currency (OCC) regulates national banks.
The Office of the Comptroller of the Currency (OCC) is an independent bureau within the U.S. Department of the Treasury. It is responsible for chartering, regulating, and supervising all national banks and federal savings associations.
The OCC oversees the operations of these institutions to ensure they comply with federal laws and regulations. This includes reviewing applications for new national bank charters, branch openings, and mergers involving national banks.
It plays a key role in maintaining the stability, integrity, and soundness of the national banking system. The OCC also monitors national banks for safety and soundness, requiring them to manage risks and safeguard customer assets.
Federal branches and agencies of foreign banks in the U.S. can also fall under the OCC’s supervision. By enforcing standards and conducting examinations, the OCC helps promote public confidence in the American banking sector.
6) Banks provide services including credit and debit cards.
Most banks in the United States offer both credit and debit cards to their customers. These cards are linked to checking or savings accounts for easy access to funds and daily transactions.
Debit cards allow customers to spend money by drawing directly from their own account balances. They are commonly used for purchases, bill payments, and ATM withdrawals.
Credit cards, in contrast, let users borrow money up to a set limit for purchases and then repay the balance later. This can help with building credit history if managed responsibly.
Both cards are widely accepted at stores, online retailers, and ATMs. Many banks also provide security features, such as fraud monitoring and alerts.
Online banking tools let cardholders monitor their activity, set up alerts, and report lost or stolen cards quickly. These features aim to make using payment cards safer and more convenient for everyday banking needs.
7) U.S. banks offer retirement accounts alongside checking and savings.
Many banks in the United States provide more than just checking and savings accounts. They also offer retirement accounts known as IRAs (Individual Retirement Accounts), which help customers save specifically for their retirement years.
IRAs come in two main types: Traditional IRAs and Roth IRAs. Both allow individuals to set aside money for retirement, with tax advantages depending on the account type and individual circumstances.
Some banks feature “savings IRA” options. These accounts typically involve FDIC-insured products like certificates of deposit (CDs) or money market savings, offering lower risk and steady growth compared to investments like stocks.
Opening an IRA at a bank is often straightforward, and some banks let customers do it online. The process usually requires basic personal information and may have minimum deposit requirements.
Retirement accounts at banks are designed to complement regular savings and checking products, not replace them. They give customers another way to plan for the future while maintaining access to secure, low-risk savings choices.
8) Regulations cover privacy, fraud prevention, and anti-money laundering.
American banks operate under an extensive set of regulations designed to protect customers and the financial system. These laws address issues such as privacy, fraud prevention, and anti-money laundering (AML).
Privacy regulations require banks to safeguard customer information and disclose their data-sharing policies. Laws like the Gramm-Leach-Bliley Act set standards for how personal financial data is collected, used, and shared.
Fraud prevention measures include robust authentication practices and monitoring of suspicious transactions. Banks are expected to use technology and best practices to detect and mitigate potential fraud.
Anti-money laundering rules are enforced through the Bank Secrecy Act and related laws, making it mandatory for banks to report suspicious activities. These regulations help prevent financial crime and disrupt the flow of illicit funds.
Banks must maintain written compliance programs and regularly train their staff. Violations can result in fines, penalties, or other enforcement actions.
Understanding the U.S. Banking System
The U.S. banking system relies on federal and state laws to regulate stability and consumer protection. Customers interact with several types of financial institutions that each serve specific roles in the economy.
Regulatory Landscape
American banks operate under a dual regulatory system. Federal agencies, such as the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC), oversee national banks and enforce rules on risk, liquidity, and consumer protection.
State-chartered banks are supervised by state banking departments, sometimes alongside federal agencies. This layered approach creates overlapping scrutiny intended to safeguard depositor funds.
The FDIC insures deposit accounts up to $250,000 per depositor, per insured bank. Most consumer deposits are protected, reducing the risk of loss if a bank fails. Financial institutions must also comply with anti-money laundering and consumer rights legislation.
Types of Financial Institutions
The U.S. banking system features multiple types of institutions:
Retail Banks: Serve individuals and small businesses by offering checking, savings, mortgages, and personal loans.
Commercial Banks: Focus on larger businesses, providing business loans, cash management, and lines of credit.
Credit Unions: Member-owned nonprofits offering basic banking at often lower fees and higher savings rates.
Savings and Loan Associations: Primarily help Americans finance home purchases.
Investment banks, by contrast, specialize in corporate finance, securities trading, and mergers. Each institution type fills a specific niche, allowing customers to choose based on their financial needs and service preferences.
Key Financial Services and Technologies
American banks now provide a wide range of financial services including checking and savings accounts, lending, investment tools, and mobile solutions. Major technology advances have improved accessibility, convenience, and security for customers.
Digital Banking Innovations
Digital banking technology has become a central part of everyday banking. Most banks now offer secure mobile apps that allow users to check balances, transfer funds, deposit checks by taking a photo, and pay bills electronically. Around 84% of Americans say these tech improvements make it easier to access financial services.
Notable features include:
Real-time account management
Person-to-person payments (e.g., Zelle, Venmo)
Two-factor authentication and biometric security
Mobile lending platforms for rapid loan approvals
Banks are also adopting robo-advisors to help customers manage investments automatically. Machine learning is increasingly used to detect fraud and improve customer service, leading to faster issue resolution and safer transactions.
