How Are They Different?
| CREDIT UNIONS | BANKS |
| 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. |