Credit Union vs. Bank
Credit Unions and Banks – What's the Difference?
Both credit unions and banks offer similar products and services like checking and savings accounts, loans and mortgages. Below is an at-a-glance comparison to give you a better idea how they differ.
|Are for-profit organizations.||Are not-for-profit organizations.|
|Return profits to a small group of stockholders.||Return profits to all members in the form of lower loan rates, higher savings rates and free or low-cost services.|
|Serve anyone in the general public.||Serve individuals within a "field of membership" made up of people who share a common bond (e.g., employer, geographic area, association).|
|Are for-profit organizations who report results to third-party stockholders.||Are not-for-profit, membership owned organizations. Each credit union member has equal ownership and one vote – regardless of how much money a member has with the credit union.|
|Are federally insured by the Federal Deposit Insurance Corporation (FDIC).||Are federally insured by the National Credit Union Share Insurance Fund (NCUSIF).|
|Have a paid board of directors who represent the owners; customers do not have voting privileges.||Elect a volunteer board of directors from the credit union membership to represent their interests.|