Is there any situation where I should use ‘Thank you’ instead of ‘Thanks’?
Solution 1:
I agree that "thank you" is slightly more formal than "thanks". I suspect if I was addressing the Queen I'd say "Thank you, ma'am". I tend to use "thank you" for emphasis, to show that I am really grateful, and it's not just a polite formality. Otherwise there's not a great difference, in my opinion of common usage. (Except for 'giving thanks', but that's a whole other kettle of fish.)