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Differences in banks and credit unions

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I never knew that there was a real difference between a bank and credit union. I simply thought it was just two financial institutions deciding to give themselves different titles.

However, banks and credit unions really do differ in style. Here are some unique features I discovered that separate the two entities.

Bank

When compared to a credit union, a bank is more focused on making money. Its goals are profit driven as it tries to market itself as an all sufficient financial need fulfillment center.

Banks are owned by shareholders, or once again, people looking to make money. Banks most likely serve a larger number of people when compared to credit unions. Therefore, you may not be as significant to them.

Credit Union

Credit unions are like sharing a large piggy bank with the people in your community. When something is happening with the “piggy bank’s” money that the community does not like, they can push for a change to be made.

The credit union is a not for profit organization. Therefore, they are not so focused on trying to serve a large number of customers to make as much money as possible. In turn, the institution’s fees and loan rates are commonly lower.

On that note, if you are looking for money products and options, a bank would be a better choice. If you are looking for relationship with the place that holds your money, focus a credit union.

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