Compare Credit Unions Versus Banks
Deciding whom to trust when looking to put your money in a financial institution may be a very hard decision. Location, fees and dependability are often big factors in the decision. One of the biggest decisions, however, may be banking at a traditional bank or banking with a credit union; here's a breakdown of these institutions' features.
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Profits
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Profits made by a credit union are given back to the member in the form of free services, lower fees and better interest rates. Bank profits are given only to investors.
Membership
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Credit unions have members, not customers. Each account holder is a member and has a say in the board of directors' election.
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Customers
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Banks have customers, not members. The customer does not have a say in who controls the bank, and only investors have voting privileges.
Locations
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Credit unions are typically not branched out as banks may be. Therefore, banks will often have more physical locations and more ATMs.
Products
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Banks are often larger than typical credit unions; therefore, a bank can usually offer more products and services than a credit union.
Fees and Interest
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A bank typically has higher loan interest rates, lower account interest rates, higher fees associated with accounts and higher overdraft fees.
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