Credit Union vs Bank | Low Interest Rates | Financial Health FCU

Benefits of Credit Unions - How are They Different?

Credit unions are member owned, not-for-profit cooperatives. They exist to serve the needs of their members and offer the same types of products and services you would find at a bank. All credit unions and banks have one thing in common: they use the deposit balances of their members/customers to make loans.

Member vs. Customer

At Credit Unions, each member is an owner of the credit union. Regardless of how much money they have on deposit, each member has one vote in electing board members.
Bank’s customers have no ownership interest in their bank and are not able to elect their board members.

Not-For-Profit vs. For Profit

Being not-for-profit, credit unions’ earnings are paid back to members; they receive higher savings rates and lower loan rates.
Banks, being for-profit corporations, earnings are paid to stockholders.

Board Members

Credit unions’ board members are comprised of volunteers, they are members of the credit union, and are elected by the membership.
Banks’ board members are paid, may not be a customer of the bank, and are elected by stockholders.

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Credit Unions vs. Banks

Benefits of Credit Unions - How are They Different?

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