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Credit Unions vs Banks

Both credit unions and banks offer almost entirely the same products and services, but it's how they offer those services that make them different.

  • At a credit union, you are a member not a customer. You are a member because you are an owner of the credit union. Banks have customers because only a few people (stockholders) own the bank.
  • At a credit union, you qualify for membership through where you live or work, being related to someone who already is a member or through church affiliations.
  • When a savings account it opened at a credit union, it is called a share account because every member is an owner of the credit union.
  • Credit unions typically charge lower loan rates, pay higher dividends on savings, and have fewer fees.
  • Credit unions are considered not for profit because all profits are returned to every member, in the form of rates, services or special dividends.
  • There are over 80 million people nationwide who have credit union accounts.

Posted: 3/20/2011 with 0 comments

Categories: Finances, Saving

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