When you’re ready to open a bank account, there are three main types of institutions to choose from: savings and loan associations, commercial banks, and credit unions.

Savings and loan associations (S&Ls) and commercial banks operate under federal and state regulations. They specialize in taking deposits for checking and savings accounts, making home loans (known as mortgages) and other personal and business loans, facilitating the flow of money into and out of accounts, and providing various financial services for individuals and businesses.

Have you ever wondered what would happen to your money if your bank went out of business or failed? Most banks insure your deposits through the FDIC up to the maximum amount allowed by law, which is currently $250,000 per depositor per account type for each insured bank.

FDIC insurance means that if your bank closes for any reason, you won’t lose your money. You’ll know a bank is properly insured if it displays the FDIC logo at a local branch, on advertising materials, or online. To learn more, visit fdic.gov.

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Credit unions are nonprofit organizations owned by their customers, who are called members. Credit union members typically have something in common, like working for the same employer, working in the same profession, or living in the same geographic area. You must qualify to become a member of a credit union to be able to use its financial services.

Credit unions offer many of the same services as commercial banks and S&Ls. Most also offer insurance for your deposits through the National Credit Union Administration (NCUA), which gives the same coverage (up to $250,000 per depositor) as the FDIC. Just look for the official NCUA sign at credit union branches and websites. To learn more, visit ncua.gov.