Bank is a privately-owned financial institution that, in its capacity as a financial intermediary, accepts deposits and makes loans. Deposits are money saved at a bank with the promise of being paid back at some future date, or in the case of loans, with interest. Most people and businesses pay their bills through bank checking accounts, putting banks at the center of our payments system. Banks are also significant sources of credit for both households and business, as well as money-market funds and a variety of other investment products.

Governments use banks to accomplish broad economic policy goals, ranging from enforcing anti-discrimination and equal opportunity policies to fostering economic development in local communities. To do so, they require different types of lending or encourage lending to specific groups. They also regulate banks by imposing minimum capital standards, setting reserve requirements and determining where to issue new bank charters.

While some nonbank institutions – such as credit unions, check cashing services and credit card companies – provide some banking functions, most people still depend on a bank for essential payment services and a place to save money. When choosing a bank, consumers should consider the fees charged for various transactions as well as the overall cost of doing business with the bank. They should also look for a convenient location and whether or not the bank offers mobile apps and other convenience features. Finally, consumers should choose a bank with a good reputation and which is federally insured.