//CREDIT UNIONS VS. BANKS
Not sure what the difference is between a credit union and a bank? We'll clear things up in the ultimate money smack-down.
Credit Unions |
Banks |
| Have members/owners | Have customers |
| Are not-for-profit | Are for profit |
| Democratically-controlled by members. Each member has one vote in electing board members and can run for election to the board or committees. | Controlled by stockholders and board of directors. Customers do not have voting rights and cannot be elected to the board. |
| After expenses are paid and reserves are set aside, surplus earnings are returned to members in the forms of lower loan rates, higher savings rates and free or low-cost services. | Profits are paid only to investors. |
| Can serve only those individuals within their field of membership. |
Can serve anyone in the general public. |
| Are socially driven, focused on financial education and improving the quality of life of members around the world. |
Are profit-driven. |
Back to THE DIFFERENCE
By member's choice, your deposits are insured up to $250,000 per account by American Share Insurance. This institution is not federally insured. MEMBERS' ACCOUNTS ARE NOT INSURED OR GUARANTEED BY ANY GOVERNMENT OR GOVERNMENT-SPONSORED AGENCY.
