The Difference Between Banks and Credit Unions
Monday, July 25 CCCU
Credit unions are member-owned financial institutions that have a not-for-profit structure. Banks are typically for-profit corporations that are owned by their investors. When you put money into a credit union, you're actually buying shares of that credit union, making you part owner. The fundamental differences between a credit union and a bank are price and service. Across the board, products and services at a credit union are a better value and the number of employees per member are always more favorable at a credit union versus a bank.
From the outside, they look very similar. They both offer checking and savings accounts, financial products like CDs and specialized accounts, and the rest of the services we've come to expect. For your convenience we offer drive through teller windows at our Sandy branch or stop in at any of our locations, deposit your checks or withdraw money, and occasionally meet with personnel to discuss your financial needs. ATMs, debit and credit cards, loans and mortgages are all on the menu at most banks and credit unions. You give them your money, and they give it back. Right?
But under the surface, the two types of financial institutions couldn't be more different. You may have noticed how excited and involved credit union (CU) members tend to be with their institutions, or the reputation CUs have for being small, regional or community-oriented. If you are looking for a banking institution that you can trust with your money, a credit union will always have your best interests in mind.