Credit Union Vs. Bank: The Credit Union Difference
Did you know the difference between a credit union and a bank? Yes, they are both financial institutions, but credit unions have different attributes that may be important to you when choosing a financial institution!
The main difference between a credit union and a bank is that Credit Unions are not-for-profit organizations owned by their members. Some other advantages include the following:
NCUA Insurance: The National Credit Union Share Insurance Fund was created to ensure members’ deposits in federally insured credit unions. Each credit union member has at least $250,000 in total coverage.
Higher Deposit Rates: Credit Unions will typically provide higher deposit rates and lower loan rates. You may also find that credit unions tend to have fewer fees and account requirements.
Personal Connection: Because credit unions are typically smaller than other financial institutions and often serve a specific community, you may find a more personalized customer service experience and an institution that adheres to its members’ values.
Shared Branching: Many credit unions participate in Shared Branching. This is a network of credit unions across the nation that allow members of participating credit unions to access their accounts at any location. This is very beneficial to members who are traveling or moving. Click the Shared Branching website link below to find participating locations near you!
A credit union may be a great choice for your financial institution if these attributes hold value to you. We hope you consider a credit union when searching for or switching financial institutions!