There are many different types of banking institutions. One of them is the commercial bank. It has a limited set of services. Commercial bank serves both individuals and businesses by offering checking and savings accounts, loans and credit cards. Commercial bank can't offer the fiduciary services that a trust company can. The mentioned above fiduciary services mean that they have to do with the administration of trusts and estates. Commercial bank can handle transactions of selling and buying some securities through its brokerage house. The broker of the commercial bank is a member of stock exchange. It also deals with insurance and financial advice.
The central bank of the state is allowed to accept and protect money for deposits and to pay checks issued by the depositors. Central bank can invest the 80% of the deposits that it keeps on hand in order to make some profit.
The state bank has the slightest difference with the national bank. The only difference is that a state bank gets its charter from the state it's in, and the national bank gets its charter from the federal government. Both state and national banks offer regular commercial services.
Savings and loan Association and Federal Land Banks are only lending institutions. The same is true about a credit union. This is a union of people who combine their savings in order to make loans to members at a low rate of interest.