PA Department of Banking and Securities outlines bank, credit union and online‑only account basics

Katrina Boyer, investor education coordinator for the Pennsylvania Department of Banking and Securities, outlined how banks, credit unions and online‑only institutions differ and what consumers should ask before opening an account. "It—s important to understand the differences between the two," Boyer said, emphasizing ownership, fee structures and customer service channels.

Boyer opened by distinguishing banks, which operate for profit and have shareholders, from credit unions, which she described as nonprofit and owned by their members. She noted savings banks—historically focused on home‑purchase savings—are now less common but still in operation. Boyer recommended matching account type to need: whether a consumer needs check‑writing, short‑term savings or an emergency fund.

On online access, Boyer separated "online banking"—digital access tied to a physical branch—from "virtual" or online‑only institutions that have no walk‑in locations. She warned virtual institutions can make…