How Are They Different?
|Credit unions are not-for-profit financial cooperatives. Earnings are paid back to members in the form of higher savings rates and lower loan rates.||Banks are for-profit corporations. Declared earnings are paid to stockholders only.|
|Credit unions are member owned. Each depositor is an owner of the credit union. Members vote for and get elected to the credit union board.||Banks are stockholder owned. Customers do not vote or have a say in how the bank is operated. Stockholders may or may not be customers of the bank.|
|Credit union board members reflect the diversity of the membership and serve voluntarily.||Bank stockholders are paid and no not necessarily reflect their customer base.|
|Credit unions generally have fewer fees and better interest rates.||Banks usually have more and higher fees and less competitive interest rates, especially for savings and investment accounts.|
|Credit unions are local and serve the interests of their membership. Affiliation, such as location or employer, is required to become a member.||Banks are open to the general public and can serve anyone.|
|Credit unions share resources with other credit unions, such as ATM networks, to offer greater convenience to members.||Banks compete with each other and do not share resources.|