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What’s the difference between a national bank and being a federal savings bank?

Let’s say you have two banks, Bank A and Bank B.

Bank A’s full name is Bank A, N.A.

Bank B is Bank B, fsb

How are the two different? What can Bank A do that Bank B cannot and vice-versa? How does this affect FDIC insurance?

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One Response to “What’s the difference between a national bank and being a federal savings bank?”

  1. doreen k said :

    It only means they have different charters. One is a commercial bank and one is a savings bank. From time to time, some charters are more desirable than others, but the regulations are constantly changing, and sometimes the banks change their charters if it presents a business advantage for them to do so.

    In terms of the customer, there is very little difference. And, ever since FSLIC was dissolved, all the banks are insured by the FDIC. Credit unions have equivalent federal deposit insurance offered by the NCUA.

    FDIC provides up to $100,000 deposit insurance coverage per owner, not per account, at each institution. IRAs are separately insured by FDIC to $250,000. You can increase your coverage by adding payable on death beneficiaries. But the beneficiaries have to be direct relatives, such as spouse, parent, child, grandchild.




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