What is the difference between a retail bank and a commercial bank?

Commercial banks have different customers and, therefore, different services from retail and investment banks. Retail banks specifically serve individuals and households. Their offerings include things like basic deposit accounts, credit cards, auto loans, lines of credit, and mortgage loans.

What is a commercial bank?

The term commercial bank refers to a financial institution that accepts deposits and offers different banking and financial products. Commercial banks provide these services to people and businesses. Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans.

How do commercial banks make money?

Commercial banks offer basic banking services, including deposit accounts and loans, to consumers and businesses. These financial institutions make money from a variety of fees and by earning interest income from loans. Commercial banks have traditionally been located in physical locations, but a growing number now operate exclusively online.