Credit Unions vs. Banks
So, what is a credit union? During the Great Depression when banks could no longer serve the community, credit unions emerged with the simple concept – “people helping people.” Communities banded together, pooled their resources, and extended loans to one another. Fast forward to today and credit union values are still anchored to serving the people.
The difference between credit unions and banks
- Credit unions are owned by members (people like you!). Banks are owned by shareholders.
- Credit unions return “profits” to members in the form of lower rates, less fees, and year-end dividends. Banks give all their profits to those shareholders.
- Credit unions are chartered to make your financial life easier. Banks are chartered to make money.
Compare Credit Unions & Banks
We're not afraid to compare credit unions and banks side by side.
Not-for-Profit Credit Unions
|Membership funds competitive rates, lower fees and value-added services.||The rates and fees charged to customers drive profits for stockholders.|
|Member shareholders have a policy voice and vote to elect a volunteer Board of Directors.||Paid officers and board members shape policy on behalf of stockholders.|
|Credit unions collaborate to improve members’ access and services.||Banks fight for customers to muscle out their competition.|
|Accounts federally insured up to $250,000 by the National Credit Union Administration (NCUA).||Accounts federally insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC).|
Why Choose a Credit Union
It’s a not-for-profit financial institution. We’re like a bank, but instead of being owned by shareholders, we’re owned by members – like you! When we offer low rates, flexible terms, and innovative banking technology – we do it because we’re accountable to you, the membership.
People Over Profit
It’s a simple concept, “people over profit.” Credit unions were created during the Great Depression, a time of economic chaos, when people were unable to get loans from over-leveraged banks. As a result, people banded together to pool their resources and help one another. While the world has changed, the core value of credit unions—people helping people—remains stronger than ever today.