There is no single government-owned national bank in the United States where ordinary people can open accounts. The phrase “national bank” is a regulatory label for privately owned commercial banks that hold a federal charter, and the country’s central bank — the Federal Reserve — works behind the scenes on monetary policy rather than serving individual customers. If you want an account, a loan, or a debit card, you get one from a private bank or credit union, not from the federal government.
What “National Bank” Actually Means
When you see “National” in a bank’s name or the letters “N.A.” after it, that label tells you how the bank is regulated. It does not mean the government owns it. Federal law requires any bank chartered under the National Bank Act to include the word “national” in its name.1Office of the Law Revision Counsel. 12 USC 22 – Organization Certificate The National Bank Act, first passed in 1864, lets private individuals form banking associations that operate under federal rules.2Office of the Law Revision Counsel. 12 USC 38 – The National Bank Act These banks get their charter from a federal agency called the Office of the Comptroller of the Currency (OCC).3Office of the Law Revision Counsel. 12 USC 21 – Formation of National Banking Associations Chase and Wells Fargo are examples of banks that operate under this framework.
Despite the official-sounding name, national banks are shareholder-owned corporations that make money through lending, fees, and investments. The “national” label means only that the bank answers to a federal regulator rather than a state banking department. The OCC monitors these institutions for solvency, requires them to hold enough capital, and enforces consumer protection rules. If a national bank breaks federal banking laws, it can face civil penalties of up to $5,000 per day for each ongoing violation, and the OCC can issue cease-and-desist orders.4Office of the Law Revision Counsel. Title 12 – Banks and Banking, Chapter 2 – National Banks
National vs. State-Chartered Banks
The country runs what regulators call a “dual banking system.” A bank can be chartered federally by the OCC or by an individual state’s banking department. Both kinds can offer the same services — checking, savings, loans, credit cards — and both can carry FDIC insurance.5Office of the Comptroller of the Currency. National Banks and the Dual Banking System The main difference is who supervises them. For you as a customer, the practical difference is usually small.
The Federal Reserve Is a Bank for Banks, Not for You
The Federal Reserve is the central bank of the United States, created by the Federal Reserve Act of 1913.6Office of the Law Revision Counsel. 12 USC 221 – Definitions It functions as a bank for banks and for the federal government. It does not take deposits from individuals. The system operates through a Board of Governors in Washington, D.C., and twelve regional Federal Reserve Banks in cities including New York, Chicago, San Francisco, and Atlanta.7Federal Reserve Board. Federal Reserve Banks You cannot walk into any of them to open a checking account or apply for a personal loan.
What the Fed does instead is set the conditions that shape your borrowing costs. Congress gave it a mandate to promote maximum employment, stable prices, and moderate long-term interest rates.8Office of the Law Revision Counsel. 12 USC 225a – Maintenance of Long Run Growth of Monetary and Credit Aggregates It pursues those goals mainly by adjusting the federal funds rate, the interest rate banks charge each other for overnight loans. When the Fed raises that rate, mortgages, car loans, and credit cards tend to get more expensive. When it lowers the rate, borrowing generally gets cheaper. The Fed also runs a lending facility called the discount window, which lets member banks borrow short-term cash directly from a regional Federal Reserve Bank.9Office of the Law Revision Counsel. 12 USC 347b – Advances to Individual Member Banks on Time or Demand Notes
Some policy debate has explored whether the Fed could one day offer digital accounts to individuals through a central bank digital currency (CBDC). As of early 2026, the Fed had made no decision to do so.10Federal Reserve Board. Central Bank Digital Currency (CBDC) That question was effectively settled in January 2025, when an executive order prohibited federal agencies from establishing, issuing, or promoting a CBDC in the United States and directed the end of any existing development work.11The White House. Strengthening American Leadership in Digital Financial Technology For the foreseeable future, the Fed will not be your bank.
The Treasury Manages Federal Money, Not Consumer Accounts
The U.S. Department of the Treasury runs the federal government’s finances but is not a commercial bank. It collects taxes through the IRS, issues government debt as Treasury bonds and bills, and holds the Treasury General Account at the Federal Reserve. Social Security benefits, military pay, and every other federal payment flow out of that account. You cannot open one yourself.
There is one narrow exception. The Treasury issues the Direct Express prepaid debit card so that recipients of federal benefits — Social Security, Supplemental Security Income, and Veterans Affairs payments — can receive their money electronically without holding a bank account.12Bureau of the Fiscal Service. Direct Express There is no sign-up cost, no monthly fee, no credit check, and no minimum balance. Cardholders get one free ATM withdrawal per deposit each month and can use the card anywhere Mastercard is accepted. Funds on the card are FDIC-insured. Even so, Direct Express is not a government-owned bank account: the card is issued through Comerica Bank under contract with the Treasury. It fills a gap for people who would otherwise have no electronic access to their benefits.
The One Publicly Owned Bank
The closest thing to a government-owned bank in the United States is the Bank of North Dakota, established in 1919 and owned by the state government. It is the only state-owned commercial bank in the country. Rather than competing with local banks, it partners with them, holding state tax revenue and offering low-interest loans for agriculture and education. Individual consumers in other states cannot bank there, and no equivalent institution exists at the federal level.
The U.S. Postal Service offers one other limited financial service: domestic money orders, available at any Post Office. A money order costs $2.55 for amounts up to $500, or $3.60 for amounts between $500.01 and $1,000.13USPS. Price List – Notice 123 You can cash a USPS money order at any Post Office for free with a valid photo ID.14USPS. Money Orders Proposals to expand the Postal Service into savings accounts or small-dollar loans have surfaced over the years, but no such program exists today.
Where That Leaves Your Money
Because the federal government does not directly hold consumer deposits, protection for your money comes through federal insurance on private accounts. The Federal Deposit Insurance Corporation (FDIC) covers deposits up to $250,000 per depositor, per insured bank, for each account ownership category.15FDIC. Understanding Deposit Insurance If your bank fails, the FDIC pays you back dollar for dollar up to that limit, including interest that has posted. The $250,000 cap applies separately to different ownership categories (individual accounts, joint accounts, retirement accounts), so a married couple at a single institution can often have well over $250,000 covered across account types.
Credit unions carry equivalent coverage through the National Credit Union Share Insurance Fund, administered by the National Credit Union Administration, at the same $250,000 limit per member, per insured credit union.16MyCreditUnion.gov. Share Insurance You can verify whether a bank is federally insured through the FDIC’s BankFind tool or by looking for the FDIC or NCUA logo at the institution.
Credit Unions as a Member-Owned Option
If the shareholder-owned model of a national bank is not what you want, federal credit unions offer a nonprofit alternative. Credit unions are cooperatives owned by their members. Any profits go back to members through lower fees, better rates, or improved services. Federal credit unions are also exempt from all federal, state, and local taxation except taxes on real and tangible personal property.17Office of the Law Revision Counsel. 12 USC 1768 – Taxation That tax treatment is one reason credit unions can often offer slightly better rates than for-profit banks.
The trade-off is eligibility. A federal credit union must define a “field of membership,” meaning a specific group of people who can join.18National Credit Union Administration. Choose a Field of Membership Common categories include employees of a specific employer or industry, members of a particular church, professional group, or labor organization, and people who live, work, worship, or attend school in a defined geographic area. Immediate family and household members of existing members can usually join too. Many community credit unions have broad eligibility, so it is worth checking whether one near you is open to new members.
So while there is no national bank of the United States in the sense of a government-run institution for citizens, the country’s banking system is built to give you choices — federally chartered banks, state-chartered banks, and credit unions — all backed by the same $250,000 federal deposit insurance.