"Unlike banks, credit unions return their earning to their members..."
The most important distinction of credit unions vs. banks
- A credit union is a not-for-profit financial institution that is owned by its members and works to serve their best interests.
- A bank is a for-profit institution that is owned by its shareholders and exists to serve their best interests.
This distinction fosters a “People Helping People” philosophy amongst credit unions that further distinguishes them from banks, and benefits members in many ways.
|Fees & Rates
- Fewer fees
- Lower loan & credit card interest rates
- Higher interest rates
- More fees
- Members are part owners of the credit union and share equal voting rights
- Shareholders are part owners of a bank and have voting rights equal to the amount of shares they own.
- Members are top priority
- Higher level of member service
- Poor customer satisfaction
- Impersonal. Customers are treated like a number
- Deposits are NCUA Insured
- Deposits are FDIC Insured
- Not for profit. Serves the best interest of members and community
- For profit. Serves the best interests of stockholders and board members
- Active in the local community
- Funds many charity events and financial education classes
- Not community oriented
- Lack of transparency and accountability to the community